The Hindu Business Line : Calcutta SE AGM adjourned amid chaos

THE 81st AGM of the Calcutta Stock Exchange today was "adjourned" amid chaos and confusion. The scheduled business, as per the agenda, could not be conducted in more than two and half hours of infructuous deliberations.

Mr P.K. Ray, Exchange Secretary, while leaving the venue of the meeting along with Mr T.K. Das, the SEBI-appointed administrator, told Business Line that the meeting was adjourned.

The meeting was to adopt accounts of the bourse for the financial year ended March 31, 2004 as also accounts of the two previous fiscals.

The AGM was also convened to approve a resolution regarding a contribution towards the Settlement Guarantee Fund (SGF) of the exchange by each individual member.

The members present objected to the resolution saying that it was ultra vires according to the exchange by-laws for SGF. They pointed out that L B Jha & Co in its special audit on SGF had mentioned that SGF was adjusted against losses, which occurred through non-bonafide transactions following the payment default and securities in the 2001 scam.

Mr Das, who chaired the meeting, refused to be drawn into the question of legality of the utilisation or adjustment of SGF.

Earlier, he informed members that SEBI would eventually take up dual responsibility of the stock and commodities market regulation. He further said: "SEBI would have three regulatory authorities each for cash, derivatives and commodities".

Indicating that this development would augur well for the stock exchanges, Mr Das said the CSE administration was actively pursuing a plan for opening a commodity segment of the bourse. "We can steal a march over other stock exchanges in terms of USP," he explained.

The administrator claimed that he has been advised by experts to look closely into eastern region specific commodities such as jute and tea for such a venture. He also informed the members of the ailing stock exchange that getting a membership of the National Stock Exchange through a subsidiary would be the last option for revival of CSE.