Calcutta Se To Hold Egms For Changes' Endorsement

An announcement to this affect was made at the seventy-third annual general meeting of the exchange held in Calcutta yesterday. The decision was taken after some brokers voiced their discontent over the exchange's recent directives asking them to pay Rs 250 annually for quotations, an annual subscription fee of Rs 3,000 and a nominal sum to be contributed towards the investors' protection fund without prior approval of the members.

CSE president J M Choudhary explained that the changes were necessary in view of the escalating paper and printing costs. "Since rough calculations show that the price per quotation would be about Rs 2,500 a year, our demand of Rs 250 a year is minimum, and in the interests of the future of the exchange," he said.

 

Senior members, however, felt the demand for EGMs was a pre-planned political stand by ex-committee members to keep themselves in the limelight a day before the exchange's committee elections.

Brokers also objected to resolution 5 that sought to increase fines from Rs 20,000 to Rs 50,000, and to resolution 8 that sought to increase the penalty on defaulting brokers from Rs 500 to Rs 5,000. Their objection centred on the grounds that the CSE membership card-value has dipped to Rs 5 lakh, and the price of most of the scrips was hovering at their 52-week lows. As a result, CSE members have been facing a funds crunch.

Under the new changes, the fine has been raised from Rs 20,000 to Rs 25,000 and the penalty from Rs 500 to Rs 1,000.

The committee report note mentions a sum of Rs 2.59 crore, which is due from the members on account of hand delivery and cash settlements in the year 1992-93. Explaining the note, CSE secretary P K De said the exchange had made a provision for contingency of Rs 2 crore in 1995-96 to pay the dues on account of hand delivery and cash settlements be few brokers in 1992-93. The association issued and allotted three shares out of its authorised capital of Rs 3 lakh to corporate bodies for membership.