Cse In 3-Pronged Rehab Blueprint

The Calcutta Stock Exchange (CSE) will embark on a three-pronged strategy to put the cash-strapped bourse back on the rails. Recovery of outstandings from defaulters, spreading its network in the North East, where the National Stock Exchange's has a marginal presence and reducing costs form core of the strategy.

Supriyo Gupta, vice-chairman of the management sub-committee, said the measures were aimed to improving the bottomline of the exchange which was brought to its knees by a handful of operators. The sub-committee is responsible for monitoring day-to-day affairs of the bourse.

Gupta said the business development efforts would have to be taken up simultaneously with legal action against defaulters and their associates. This would help the CSE and revive sentiments on the bourse.

 

He said the exchange would also approach the West Bengal government for support to revive the exchange in view of its crucial economic role in the state. The revival of the bourse would fit into the state's drive for economic rejuvenation.

However, the CSE required more time to implement some growth measures on its own before asking from the support of the state government.

He said the exchange had initiated legal action against erring brokers and was determined to penalise them. "I am hopeful that they would be proved guilty at the court of the law and would be penalised," he said.

CSE has also filed a case against IndusInd Bank for holding cheques against an account which had no funds, causing a major loss to the exchange.

On widening its network in the north-east, Gupta said the exchange would commission a study to prepare a blueprint for expansion. "There is a huge scope for expanding CSE terminals in the north-eastern region. CSE should tap the market which is almost untapped so far, " he said.

While elaborating on cost cutting, he said the exchange was in the process of reorganising its offices under one roof. They are currently spread over the twin buildings on Lyons Range.

...to scout for a new ED

The management sub-committee will soon launch a hunt for a new executive director (ED). The top executive post at CSE will fall vacant from September 22 when the tenure of current ED expires.

Sources said the CSE management would prefer to select a "young and dynamic" administrator for the position. However, the management was not sure whether a young administrator would like to join the crisis-ridden exchange now.

But the ED's post would be not kept vacant for long. The management sub-committee has requested its vice-chairman, Supriyo Gupta, to supervise the daily functioning of the exchange.

Gupta has began acting as a bridge between the exchange administration and the Dipankar Basu-led management committee. However, he would not be able to give his full attention to CSE due to his other commitments. Gupta is on the boards of several companies and a leading bank in Nepal.