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Payment shortfall crisis at CSE deepens
The Calcutta Stock Exchange (CSE) on Monday plunged deeper into the payment crisis forcing the authorities to contemplate raising bank finance by offering assets of the bourse as collateral securities to overcome the shortfall.
The Calcutta Stock Exchange (CSE) on Monday plunged deeper into the payment crisis forcing the authorities to contemplate raising bank finance by offering assets of the bourse as collateral securities to overcome the shortfall.
CSE President, Kamal Parekh, in a bid to allay apprehension of members due to the persisting crisis held an emergency meeting. He promised that all possible sources of revenue would be explored to protect the interest of members and their deposits. He conceded though that CSE was passing through extremely difficult times, according to a CSE statement. Asked by members on alternative avenues for resources, Parekh said, “If necessary bank finance can be organised by offering assets available with the exchange as collateral securities.” Parekh, however, said at the moment there was no necessity or plan for mortgaging the stock exchange building or any other asset of the exchange for borrowing money.
In a bid to boost the morale, Parekh said that the pay-in and pay-out for settlement 149 had been completed, but admitted that some had not been released and were being examined.
According to information available at the exchange, the authorities blocked the pay-out of a substantial number of brokers for settlement 149 as per instructions of the SEBI officials, who were presently investigating the transactions. The CSE crisis influenced trading sentiment countrywide as SEBI moved to block pay-out of many brokers affecting, line operators in Delhi who had to get the payments.
Bureau Report
CSE President, Kamal Parekh, in a bid to allay apprehension of members due to the persisting crisis held an emergency meeting. He promised that all possible sources of revenue would be explored to protect the interest of members and their deposits. He conceded though that CSE was passing through extremely difficult times, according to a CSE statement. Asked by members on alternative avenues for resources, Parekh said, “If necessary bank finance can be organised by offering assets available with the exchange as collateral securities.” Parekh, however, said at the moment there was no necessity or plan for mortgaging the stock exchange building or any other asset of the exchange for borrowing money.
In a bid to boost the morale, Parekh said that the pay-in and pay-out for settlement 149 had been completed, but admitted that some had not been released and were being examined.
According to information available at the exchange, the authorities blocked the pay-out of a substantial number of brokers for settlement 149 as per instructions of the SEBI officials, who were presently investigating the transactions. The CSE crisis influenced trading sentiment countrywide as SEBI moved to block pay-out of many brokers affecting, line operators in Delhi who had to get the payments.
Bureau Report