The new memorandum of association for the bourse, yet to recover from the scam of 2001, incorporates the entire procedure for demutualisation and the new shape of the bourse. It has to be adopted by November 28 as decreed by the Securities & Exchange Board of India.
At the 82nd annual general meeting on Wednesday, brokers refused to pass a resolution that proposes to increase the authorised capital from Rs 3 lakh at present to Rs 10 crore. Brokers wanted the bourse to make a rights issue first, and then open up the minimum 51% stake to the non-trading public.
The administrator, Tushar Kanti Das, pointed out that there was no scope for a rights issue and then adjourned the meeting when brokers remained adamant and fired a volley of abuse.
The demutualisation scheme, as approved by Sebi, states: CSEA shall incorporate the provisions of the demutualisation scheme appropriately in its memorandum and articles of assocaition and the rules, bye-laws and regulations on or before the due date. The due date is November 28.
Mr Das tried to explain that it would not be possible to get the resolutions cleared before the due date unless the brokers relented today. We need at least seven days before this meeting can be called again, he said.
Exchange secretary PK Ray said the implications of Wednesdays failed meeting on the demutualisation process could not be ascertained.