CSE board to adopt BOLT expansion programme

CALCUTTA May 22: The Board of the Calcutta Stock Exchange would adopt the proposed BOLT expansion programme and a memorandum of understandi...

CALCUTTA May 22: The Board of the Calcutta Stock Exchange would adopt the proposed BOLT expansion programme and a memorandum of understanding (MoU) with the stock exchange, Mumbai, (BSE) is likely to be signed at the end of this month.

Cse secretary P K De said that M G Damani, president, BSE, would be visiting the city on May 31, and is expected to sign the MoU on that day.

The CSE board would be meeting tomorrow to discuss and adopt the BOLT expansion programme which was earlier cleared in an extraordinary general meeting of the exchange.

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According to De, the arrangement would be highly beneficial to investors of Calcutta, particularly the smaller ones, who would be able to sell or buy small lots in 6,800 scrips traded on the BSE.

When asked whether CSE would lose its business once the bolt connection was through, De said that was a possibility, but small brokers would continue to trade on the local bourse, he added.

Under the terms of agreement, the two stock exchanges would establish a common connectivity link to serve as the backbone on which trading terminals at Mumbai would be connected to C-star.

However, the cost of linking would have to be shared by members of both the exchanges, and a final decision in this regard would be taken by their respective governing boards.

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The pact also mentions that disputes between members of the stock exchanges would be resolved by a machinery which the Securities & Exchange Board of India (SEBI) may decide to set up to resolve inter-exchange disputes.

In the case of C-star expansion of BSE, the agreement clearly said that once the trade guarantee scheme of CSE was approved by SEBI, and a clearing corporation was set by the local stock exchange, then BSE would be willing to sign an MoU in this regard.

The CSE authorities have already decided to set up a clearing house, and Canara Bank has been given the mandate to establish one. The said clearing house would be functional soon, CSE sources said.