Kolkata: The board of the Calcutta Stock Exchange (CSE) Friday approved joining the Indian Clearing Corporation Ltd (ICCL) promoted by BSE to carry out settlement for cash trading on the bourse.
"As our in-house clearing house cannot do the settlement after the SEBI directive, we decided to join ICCL for settlement activity," CSE chairman and public interest director Dipankar Chatterji told PTI after an emergency meeting of the board.
SEBI in a direction dated April 3 had asked CSE not to continue with clearing and settlement of trades executed on C-Star through its clearing house beyond April 5 till the bourse established a clearing corporation in compliance with the provisions of SECC Regulations or tied up with another clearing corporation.
Asked when trading could resume on the C-star platform, Chatterji said it would happen soon after formalities and infrastructure were in place.
Trading was suspended from April 4.
Though Chatterji did not reveal the charges that CSE had to pay to ICCL for the service, he said it was a hefty sum for a small local bourse.