KOLKATA: National Institute of Securities Markets (NiSM), an educational institute established by the Sebi, came out in support for Calcutta Stock Exchange saying ‘continuance of CSE far outweighs its discontinuance’.

The country’s largest regional bourse, on the fourth consecutive Diwali without trading on its platform C-Star following Sebi’s directives, received a surprise with the NiSM supporting its existence.

A recent ‘CSE business plan’ prepared by the School for Securities Information and Research of NiSM has noted, “On a social cost benefit analysis (SCBA) basis, the ‘continuance’ of CSE far outweighs its discontinuance.” Adding further, the report pointed that CSE will have a beneficial impact on investors, intermediaries and issuers with the consequent benefits flowing to a larger ecosystem. “A detailed consideration of national factors makes a strong case for the role of CSE in eastern India. International experience shows that closure of small and regional exchanges has been proactively pursued in any jurisdiction,” the report stated. The Sebi had directed CSE not to continue with the clearing and settlement activities of trades executed on C-Star through its clearing house beyond April 5, 2013, till the bourse establishes a clearing corporation in compliance with the provisions of SECC regulations or ties up with another clearing corporation. The report pointed out numerous rationale for its existence and future role of RSEs. CSE officials declined to comment on the business plan prepared by the NiSM’s research arm. As per the Sebi norms, a stock exchange whose annual trading turnover is less than Rs 1,000 crore can apply for voluntary surrender of recognition and exit.—PTI