CSE to resume operations with muhurat trading

Nov 06, 2007
Ashish Rukhaiyar
MUMBAI

WHEN the Bombay Stock Exchange (BSE) bought a 5% stake in Calcutta Stock Exchange recently, it was widely believed that the ailing regional exchange will get a new lease of life with Asia’s oldest bourse coming on board.

Sources now add that the time has come when CSE, in all probability, will finally resume trading with a muhurat session on Diwali day that will be linked to BSE’s token session scheduled on November 9. Technically, while the CSE is still operational, trading volumes are negligible.

While, CSE used to perform a token muhurat session every year on Diwali day, trading volume was measly as there were no takers for companies listed on the regional bourse. Interestingly, Calcutta Stock Exchange, at one point in time, was counted among the biggest stock exchanges of the country.

According to Sebi, CSE reported a turnover of more than Rs 27,000 crore in 2001-02, making it the third-largest exchange of India next to NSE and BSE. In 2006-07, CSE was one of the only two regional stock exchanges that reported at least some amount of trading turnover.

Meanwhile, sources add that this year there is a high probability of volumes on CSE picking up as member brokers will be able to access the common basket of BSE stocks. “Even if there are some last minute glitches, the stage is all set for a soft launch as the basic connectivity has been established between BSE and CSE,” said a source on condition of anonymity. The surveillance, trading and settlement systems have been taken care of and any CSE member can now trade on the BSE platform, he added.

Members of the Calcutta Stock Exchange further add that any member who is linked to the local area network (LAN) can now trade in any of the BSE listed entities. "While the LAN has been tested, broker members who are using leased lines may face some glitches. The frontend has already been provided and the exchange will see a muhurat session on November 9", said a source close to the development.

ET had earlier reported that BSE had been asked to revive the regional bourse. A couple of months ago, BSE bought a 5% stake in CSE for around Rs 6 crore thus valuing the regional exchange at Rs 123 crore.

Interestingly, CSE was one of the very few regional stock exchanges (RSEs) where there was a glimmer of hope that equity trading will once again see the light of the day. Most of the RSEs witnessed bids from entities that were more interested in using the assets, especially land bank, after acquiring a stake in the bourses.