Calcutta Stock Exchange stares at uncertain future on Samvat 2076

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Published: October 26, 2019 8:38 PM

The only surviving regional bourse has been unable to find "a solution" so far and continues to fight a legal battle with the regulator, sources said. A few employees of the exchange spoke about the "uncertain future" and were looking forward for a revival.

Calcutta Stock Exchange, uncertain future, Samvat 2076, Muhurat Trading, CSE, Securities and Exchange Board of India, SEBISome of the stock exchange members also said that the bourse should withdraw its legal petitions that it filed in the court and request SEBI to offer a safe exit route.

Calcutta Stock Exchange (CSE) continues to stare at uncertain future when two major bourses in the country are gearing up for Muhurat Trading to mark the beginning of Samvat 2076. The stock exchange in the city enters into the seventh year of trading suspension after the capital market regulator, Securities and Exchange Board of India (SEBI), had barred trading at C-Star (the online platform of CSE), for non-compliance of clearing and settlement norms.

“It is status quo for CSE. There is no clear direction as of now,” a senior official told PTI. On the occasion of Diwali, stock exchanges hold the Muhurat Trading, one-hour session, which is considered auspicious to mark the beginning of the Hindu calendar year, called Samvat. This year, the special session will be held on Sunday from 6.15 pm to 7.15 pm.

The only surviving regional bourse has been unable to find “a solution” so far and continues to fight a legal battle with the regulator, sources said. A few employees of the exchange spoke about the “uncertain future” and were looking forward for a revival. CSE had earlier said it was in the process of filing an application with SEBI for setting up a MSME Exchange for clearing function with any of the existing clearing corporation. But, there had been “no progress in this regard”, the sources said.

Some of the stock exchange members also said that the bourse should withdraw its legal petitions that it filed in the court and request SEBI to offer a safe exit route. CSE currently offers its members to trade through NSE and BSE and its earning has also been deteriorating. Total income of the exchange was Rs 20.67 crore in 2018-19 as against Rs 31.34 crore a year before while its profit plummeted to Rs 5.03 crore in the last financial year, compared to Rs 15.37 crore in 2017-18.

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