CALCUTTA, SEPT 14: The board of directors of Calcutta Stock Exchange today approved the proposal for providing corporate membership cards to smaller stock exchanges of the country.Kamal Parekh president of CSE said it had submitted a blue-print to the Securities and Exchange Board of India (Sebi) indicating its intention to grant membership to smaller exchanges. The proposal was approved recently subject to permission to this effect by CSE board, which was taken today.Parekh informed that already ten regional stock exchanges, including inter-connected stock exchanges (ISE) and Ludhiana Stock Exchange (LSE), had approached the CSE asking for corporate membership.He said the enthusiasm of these stock exchanges for becoming members of CSE could be gauged from the fact that even before Sebi permission was received they had received application from LSE to this effect.The LSE, Parekh said, had already formed a 100 per cent subsidiary and it would be the first regional stock exchange to become acorporate member of CSE.Those smaller exchanges becoming corporate members of CSE would be provided connectivity through V-SAT and would be able to trade freely from their place of origin, Parekh said and added that the respective exchanges would have the authority to provide additional terminals.The pay-in and pay-out procedures has also been sorted out and there was no possibility of any default from either side as the respective exchanges would be responsible for meeting all the payment obligations on behalf of the members to whom they are providing terminals, he said.By virtue of its statue and proactive nature, CSE is fast emerging as the leader of the the regional and smaller stock exchanges of the country, who are being provided with a transparent and efficient trading platform, Parekh said.Asked what prompted the regional stock exchanges to become members of CSE and not the BSE, which is considered to be a bigger stock exchange, Parekh said it is just a monetary consideration. While thecost of a BSE card is something in the region of above Rs one crore, the CSE card is available at around Rs 15 lakh, he said.
