Kolkata, Dec 09: Chairman of Securities and Exchange Board of India (SEBI) G N Bajpai today said that the recent supercession of Calcutta Stock Exchange (CSE) board was due to risk management issues and not for low trading volumes or any infrastructural problems. Commenting upon the recent supercession, Bajpai said that appointment of the administrator by SEBI had been done to sort out the risk management issues of the exchange.
When asked whether depletion of the settlement guarantee fund (SGF) of the exchange in the wake of the march 2001 payments crisis was a major risk management issue as brokers and investors were not comfortable in trading on the exchange, Bajpai said that it was only one of the host of reasons.
The SEBI chief told reporters after speaking at national seminar on investor education jointly organised by Institute of Company Secretaries of India and stock market regulator that the supercession would continue till the risk issues were sorted out.
The exchange would be re-instated again once this issue was sorted out, he said.
The CSE was the fifth exchange in the country to be superceded by SEBI.
Bureau Report