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CSE postpones AGM by 3 months

Jayanta Mallick

KOLKATA, Aug. 7

THE Governing Committee of the Calcutta Stock Exchange today decided to postpone the AGM of the bourse by three months.

The decision was taken in view of absence of any direction from the Union Government on the issue of demutualisation and delay in finalisation of accounts for the financial year 2000-2001.

After the stock market scam in March, broker-directors of the BSE and CSE had yielded place to the non-elected directors to pave way for demutualisation.

Ms D.N. Raval, Executive Director (Legal) of SEBI, who is on the CSE board, told newspersons after the meeting that the CSE authorities were in touch with the Registrar of Companies on the issue of extension.

Ms Raval explained that the on the demutualisation issue, the SEBI and the Union Finance Ministry had differed on whether the Securities Exchange Contract Act needed to be amended. The Law Ministry is yet to give its view on the issue. In this situation, the role of the brokers in the management of the two major exchanges remains a grey area.

``Hopefully, within three months, the legal issues would be addressed,'' she added.

Meanwhile, the CSE has decided to suspend trading of the DSQ Software scrip. NSE and BSE have already suspended trading in the scrip.

On the issue of derivatives trading, CSE is likely go along with BSE. ``Even though talks were on with BSE and NSE, I think we may go for membership on BSE's derivative segment,'' Mr D.Basu, Chairman of the Securities Trading Corporation of India Ltd, wh o is also on the CSE Governing Committee, said. A subsidiary in the name of CSE Derivatives Markets Ltd has already been registered.