Calcutta Stock Exchange – On the path of recovery

Glories are always temporary.

Calcutta stock exchange , one of the oldest stock exchanges of India lost its credibility in the last decade. It was a time when economic times used to show quotation of CSE alongwith BSE. Greed and malpractices of a few members caused the defunction of recognised stock exchange.

However, in last five years various steps had been taken to ensure the protection of interest of members. Various IAS officers, reputed persons from Industry and professional bodies were appointed as member of its governing body to pave the recovery path of the exchange. The major change was its demutualisation thanks to BSE a major role player for its recovery.The second important confidence building measure was providing the Bombay Stock Exchange platform to the existing members of Calcutta stock exchange. In 2009, five companies including Maithan Alloys , Gloster Jutemills etc were given BSE platform as their listing documents and compliance were in order over the years. They maintained the respect for their exchange and their old investors.Now there are 130 members who have opted the scheme to use BSE terminals i.e. they may trade in C-Star and BOLT simultaneously. Now the members have facility to trade through NSE terminal and finally the members of CSE ( who have opten for NSE terminals) may provide the services of future and options to their clients.

In last five years many members who were badly suffered from the ineffectiveness of the exchange surrendered their SEBI registration . The completely lost the faith on the working of the exchange , however those who hold perserverence are now getting rewards. Afterall ,they got BSE platform with a least payment of fees. Currently , they may trade in 6123 scrips on CSTAR and thousands of companies on BSE and NSE.

Most of the Indians especially young generations think that there are only two exchanges , NSE and BSE , however CSE is the third major exchange with a  turnover of Rs. 15.05 crores as on 31st Augutst 2012. CSE , whatever be its position, always released the trading summary of top securities. Although , still it has a heap of defunct companies , but the exchange is easily giving opportunities to those companies to delist themselves. Obviously, the bad blood must go out of the exchange.  Now, companies like Infosys, TISCO, RIL, L&Y etc are traded on the platform of CSE.

It has a special tie up with HDFC Bank for the banking transacton of members with many facilities . It has now a separate depository ( DP ) , separate KYC centre, Vodafone special schemes to members which shows that the exchange is active and on the right path. The members may now avail backoffice technical solution through software companies.

It still has a good portfolio of old companies , the investors in them may now get an opportunity to get fair market value of their investments hold for a number of years. The index is around 6000 , lets see where it goes.