The Cochin Stock Exchange (CSE) will soon wind up its operations as the process for its exit option is in the final stages.
All formalities for the exit will be completed shortly, a top official of the exchange told Business Standard.
The exchange had completed 90 per cent of the formalities of the Securities and Exchange Board of India (Sebi). It is awaiting clearances from Sebi to clear out its liabilities, which are around Rs 17 crore, said the official.
The amount outstanding to 720 members is roughly Rs 9 crore. The members include those who had surrendered, sold or transferred their membership. The exchange currently has a membership base of 508.
The CSE has decided to clear off the liabilities by selling its assets, estimated at around Rs 22 crore. However, Sebi clearance is essential for the sale of assets, the official said. While the exchange has to pay a fee of Rs 1.75 crore for the exit to Sebi, the exit option would be allowed only after settling the dues.
In terms of turnover, the exchange was the fourth largest in the country having a daily turnover of Rs 70 -100 crore in the 1990s. However, it stopped trading in 2005.
Following the non-extension of the recognition of the exchange last November, a general body meeting in January this year decided to apply for exit from the stock exchange business.
Cochin Stock Brokers Limited (CSBL), a subsidiary of the exchange formed in 2000, will however continue its operations after the exit. CSBL is active in stock broking business and has a membership in BSE and NSE.
The exchange is also active in various educational and awareness programmes connected with the capital markets. “After the exit, the new entity would be conducting extensive education programmes with the objective of turning common investors into informed investors,” the official added.