BSE buys 5% in Calcutta Stock Exchange

Bombay Stock Exchange has purchased a five per cent stake in the Calcutta Stock Exchange, based in Kolkata, for Rs 60 crore as part of the corporatisation of the regional exchange.

Bombay Stock Exchange (BSE) bought the stake at Rs 2,000 a share, the exchange said in a statement issued late on Tuesday.

The CSE has been valued at Rs 1200 crore based on the BSE purchase value. Calcutta Stock Exchange is the second stock exchange, after BSE, to sell stake to investors as part of the corporatisation plan for stock exchanges.Earlier this year, BSE completed the corporatisation process by selling 51 per cent stake to various investors including Singapore Stock Exchange and Deutsche Boerse.

NSE likely to buy 5% in Chennai, B'lore SEs

The National Stock Exchange ( NSE) is planning to pick up stakes in the Chennai Stock Exchange and the Bangalore Stock Exchange.According to sources close to the development, the exchange could pick up 5 per cent each in these exchanges as per the demutualisation norms laid down by the market regulator Securities and Exchange Board of India.

The government has fixed a limit of 5 per cent as the maximum holding by an institution or an individual. However, no final decision has been taken as yet since the board will have to approve the stake purchase, said the sources.They added that if the decision to this effect is taken by the NSE, it will help promoting the regional stock exchanges. For the NSE, indications are that as of now this will be financial investment.

At a later date, the stock exchange may also promote a platform for an interconnected exchange for small and medium sector enterprises. If that happens, investment in regional exchanges will deliver fruits.

Read more in The Business Standard article.

London firms keen on CSE revival

The financial services companies in the UK are keen on participating in the revival of the Calcutta Stock Exchange (CSE), the Lord Mayor of London A J Stuttard said.

The involvement of the companies can only be possible with regulatory permissions and a strong “political will” on the part of the local government. The revival of the exchange is essential to develop the region as a financial services centre, the Lord Mayor said.

London has proved itself as a financial services centre by setting up a separate Finance Services Authority, independent of government control, to develop the city in line with modern requirements.

The city houses the London Stock Exchange (LSE), London Metal Exchange (LME), the Euronext derivatives platform and Baltic Exchange apart from being a base for large financial services companies. According to established data, 3,500 trillion pounds are managed from UK.

Read more in The Business Standard article.