The Calcutta Stock Exchange (CSE) has extended the time period to receive expressions of interest (EoIs) for divestment of 51% in the bourse by a month to 23 April.
“CSE has extended by one more month the time for receiving EoI for the divestment,” a senior CSE official said. PriceWaterhouseCoopers (PWC) is advising the exchange in the demutualization process. CSE needs to disinvest 51% stake in favour of strategic partners or investors to meet Securities and Exchange Board of India (Sebi) guidelines under Demutualization Scheme 2005.
As per the guidelines, an investor could not hold more than 5% stake in the exchange. Foreign investors can participate in the divestment process. Sebi had set end-August as the deadline for divestment.
The current level of daily trading at CSE is between Rs3 and 4 crore, with no large capitalized stocks being traded. Only local stocks are active.
The net worth of CSE as on March 2006 was Rs 55.9 crore (excluding the settlement guarantee fund) while the net book value was Rs 11.10 crore. There were no external borrowings. CSE’s sheen started fading after March 2001, when the Ketan Parekh stock scam hit the bourse, leading to a default of Rs 120 crore.
CSE is run by a management committee under Sebi after the regulator dismantled the board running the stock exchange.