The Calcutta Stock Exchange board is meeting on Thursday to take stock of the situation after SEBI’s fresh circular on Wednesday to several stock exchanges which have not applied for de-recognition or planned exit.
The market regulator's communication said that it might be “constrained to take steps” against such bourses which have not complied with the SEBI’s earlier guidelines for the regional stock exchanges. The market regulator is trying to push out the regional stock exchange, most of which did not meet its set criteria for existence. CSE also received the same circular.
The CSE, which has not been carrying on transaction on its own platform since April 4 last year in absence of a clearing corporation, have, however, been allowed by the market regulator to route trading by its members through the BSE and NSE platforms. The current daily trading value of CSE members on these two platforms are around Rs 300 crore.
Madhav Reddy, MD and CEO of CSE, told Business Line that the market regulator’s latest communication did not at all mean stoppage of activity or closure of the CSE. “The board would meet to decide on the appropriate response on the subject,” he said.
He said that CSE faced certain road blocks in setting up an independent clearing corporation. Recently CSE tied up with OTCI and Madhya Pradesh Stock Exchange to bring them under an unified trading platform. “As of now, there is no uncertainty over the continuance of the exchange,” he added.