CSE plans to set up financial hub

Calcutta Stock Exchange (CSE) is planning a "financial hub", a first of its kind by any stock exchange in the country, at Rajarhat township in Kolkata. The state government has promised CSE a 5-acre plot by the end of January 2009.

"At the moment, everything is at the planning stage as it depends on when we get the land. But we want CSE to be a financial hub, which would cater to all investors and financial intermediaries," said a senior official of the exchange.

Bombay Stock Exchange (BSE), India's oldest exchange, has picked up a strategic 5 per cent stake in CSE, which completed the process of demutualisation recently.

The facility would be a multi-storied building to house varied financial services. "We would have separate floors for each segment of activities like mutual funds, derivatives etc.," he added.

The hub would also have a training institute to offer various courses, including BSE certified ones. CSE is also in talks with the BSE for link, so that exams could be conducted in Kolkata itself. At the moment, such exams are only conducted by BSE in Mumbai.

Currently, BSE and NSE have various certified courses on different aspects of the capital markets. According to sources, CSE is at the final stages of implementing various training programmes for general investors by the end of January.

"The ultimate aim of the exchange is to create a skilled workforce for its own operations and spread awareness among general investors," he told the Business Standard.

Meanwhile, it is learnt that CSE has already formed a board of directors to select a chief executive officer (CEO) for monitoring its day-to-day business. The board would be meeting on January 24, 2008.

The bourse started trading this Diwali on "Mahurat" day on November 9, 2007, by introducing "Depository Services" for its members and clients, and that too at cheaper rate, so that they need not go to any other institutions or private brokers for the depository requirements.

However, trading on the BOLT system, which would facilitate exclusive CSE-listed shares to trade on the BSE platform is expected to commence from

January 2008 with about 50 such complied members to begin with.

It also announced that to trade in BSE platform along with the CSE, a member needs to deposit Rs 12.5 lakh (Rs 2.5 lakh for BSE platform) as security.