Calcutta Stock Exchange: Supreme Court Refuses To Accept SEBI Plea On Extensions Granted To The Bourse
The CSE was barred by the Securities and Exchange Board of India in 2013 due to regulatory and compliance issues.
The Supreme Court on Friday refused to entertain the Securities and Exchange Board of India’s request to put a stop to subsequent extensions of time granted to the Calcutta Stock Exchange for adhering with the market regulator's exit policy of 2012.
As per this policy, stock exchanges that fail to meet the turnover requirement of Rs 1,000 crore on a continuous basis and fail to set up a separate clearing corporation or tie up with an existing recognised clearing corporation will be subject to a compulsory exit process.
A division bench of justices Abhay S Oka and AG Masih said the timeline given by the Calcutta High Court to the CSE to comply with the exit policy expires in February 2025 and, therefore, there is no need to interfere with the order as of now.
SEBI counsel Additional Solicitor General N Venkataraman requested the top court to take up the case in March so that no further extensions are granted to the stock exchange. "For 12 years, they have not done any business, it is becoming a hub for manipulation," Venkataraman said.
Venkataraman said SEBI's only plea in this case was that no further extensions should be granted to the bourse.
Therefore, the top court fixed the next date of hearing for the case on March 7 to ensure that the CSE has made good on the regulator's requirements.
The CSE was barred by SEBI in April 2013 due to regulatory and compliance issues. Since then, CSE's only function has been to provide its members a platform to trade on the NSE.
In February this year, the Calcutta High Court had granted the CSE six months to establish a clearing corporation in compliance with the market regulator's SECC regulations or to tie up with another eligible clearing corporation. This time was then extended by another six months by an order of the high court in August.
The CSE was established in 1908 on China Bazar Street in Kolkata. It was the second stock exchange formed in India, following the BSE, which was established in 1875. Its business began to decline after the National Stock Exchange's rise and certain scandals, which damaged its reputation.
