CSE looks to solve clearing corporation puzzle

The Calcutta Stock Exchange (CSE) is hopeful of sorting out the clearing corporation issue, which is holding back its ability to carry out normal trading activity on its own platform.
"We had a discussion with a clearing corporation and they will take our proposal at their own board meeting. We will come to know about their decision in a fortnight," CSE managing director and CEO Madhav Reddy said here today, on the sidelines of an event on corporate governance organised by Indian Chamber of Commerce & Industry.
The latest Securities and Exchange Board of India (Sebi) guideline for risk management and mitigation left CSE's own clearing house ineligible to carry out settlement as it does not meet the minimum capital requirement.

Now, CSE has to tie up with a clearing corporation to enable trading on its own platform C-star.
Meanwhile, speaking at the event, an NSE official said a notification on listing regulations is in the works.
Sutanu Sinha, member of the National Foundation for Corporate Governance, impressed upon the need for an early warning system at the national level for detection of any corporate mis-governance.
"The Ministry of Corporate Affairs uses a statistical tool to occasionally generate alerts on unusual corporate numbers. But its restricted use does not qualify it as a national alert generator," he said.