CSE members approve demutualisation

Kolkata, June 7 (UNI) The members of Calcutta Stock Exchange (CSE) today approved the demutualisation of the bourse in accordance with the Securities and Exchange Board of India (SEBI) order.

The move saved the exchange from virtual de-recognition by the SEBI, which had set a two-month deadline while directing the bourse to change the Memorandum of Association (MOA) as per a similar directive to all other similar regional stock exchanges in the country.

The members approved the increase of authorised capital from Rs three lakhs to Rs 10 lakhs divided into 4000 equity shares of Rs 250 each by creation of additional 2,800 equity shares.

Bourse's administrator T K Das told reporters that a report would be sent to the Securities and Exchange Board of India (SEBI).

Das said the bourse has appointed Price Waterhouse Coopers for recommending 51 per cent dilution of stake as per the rules of demutualisation.

He said the amendment would enable constitution of a board, which would be represented by the broker representatives and SEBI representatives among others. A chief executive officer (CEO) would be appointed to look into the day to day affairs.

Earlier, pandemonium prevailed when the bourse members opposed the increase of authorised capital to Rs 10 crore as proposed in notice of the extra-ordinary general meeting (EGM).

However, later, the members approved all the seven amended resolutions put forward by them to the bourse authorities.

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