CSE to seek more time to meet Sebi norms for trading platform

The Calcutta Stock Exchange, one of the country's oldest bourses, will seek more time to meet capital market watchdog Sebi's guidelines regarding the operation of bourse's trading platform C-Star. Due to clearing corporation hurdle, C-Star, the CSE's own platform, remained non-functional since April 2013.

The CSE had sought an extension of nine months for implementing Sebi's guidelines for regional stock exchanges which ended in May 2014. Sources told PTI that Sebi had called a meeting to discuss the extension sought by the exchange.

The CSE had also informed Sebi that it was undergoing consolidation and took over five other regional exchanges. Besides, it was going through the process of sale of land asset. The CSE had already appointed a consultant to sell a real estate asset to raise Rs 250-300 crore to be ploughed back for running of the exchange. SEBI had approved sale of land for specific use of the proceeds for running of the exchange on May 26. Based on Sebi approval, the CSE took shareholders' nod at a EGM on June 20 to go ahead with the sale of land that may be utilised to buy a stake in a clearing corporation, a major hurdle for the local bourse to stay operational as an independent exchange. In effect, CSE was unable to meet the turnover criteria of Rs 1,000 crore minimum trading in a year.

It may be noted that Sebi set up new norms for operation of regional stock exchanges. They need to own a trading platform with an annual trading of not less than Rs  1,000 crore. This apart, the net worth of the exchange should not be less than Rs 100 crore, which the CSE has fulfilled.