CSE set to get lifeline from NSE

Kolkata, Sep 20: The beleaguered Calcutta Stock Exchange (CSE) is all set to get a lifeline from the National Stock Exchange (NSE).

The exchange will sign an MoU with NSE for sharing a common trading platform.

The MoU would enable 300 odd active members to trade in NSE along with the power to issue contract notes.

Besides, small and medium companies listed only in CSE could be traded on NSE also.

CSE's administrator T K Das said the exchange had got a proposal from NSE last week.

According to him, NSE had agreed that CSE brokers would not lose their identity.

"They will not become sub-brokers of NSE. CSE will collect the listing fees for all the companies listed here but NSE brokers will be allowed to trade in these stocks," he added.

Mr Das said initial discussions with NSE indicated that the NSE would look after surveillance requirements and CSE would look after margin issues.

"We are expecting a daily turnover of Rs 500-600 crore once this system is in place," added Das.

CSE had already initiated discussions with BSE for sharing of trading platform.

The CSE administrator pointed out that the NSE proposal is more attractive than BSE.

Mr Das said if trading volumes in CSE increased, it might look for increasing the settlement guarantee fund (SGF) through additional deposits from members.

At present, CSE had SGF of Rs 66 crore.

CSE would complete inducting a strategic partner by divesting 51 per cent stake August 31, 2007, he said.

UNI