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Sebi begins probe into CSE 'irregularities'

The Securities and Exchange Board of India sleuths on Wednesday commenced a probe into the alleged irregularities at the Calcutta Stock Exchange.

"Yes, four-five Sebi officials have come to the exchange to examine the functions and inspection is being done'', CSE executive director, Tapas Datta said.

This fresh probe comes even after a detailed report on the payment 'shortfall' and other irregularities was submitted by the exchange to the Sebi last week.

Sebi and the finance ministry had set standards by the way they dealt with the brokers and institutions alleged to have manipulated the markets and CSE should take a cue from it, a CSE management sub-committee member was quoted as saying.

The sub-committee had reportedly expressed dissatisfaction with the way the payment shortfall issue was addressed by the CSE administration.

The CSE in its report to Sebi had held systemic failure as causing the crisis, but the market regulator suspected that the regulations on margins were not followed and surveillance department failed in its task.

CSE doubles turnover fee payable by brokers

The Calcutta Stock Exchange on Wednesday said it has decided to increase turnover fees payable by the members from .00025 per cent to .00050 per cent.

"The increase in turnover fee was an attempt to replenish the settlement guarantee fund of the exchange which was eroded to the extent of Rs 380 million recently," CSE executive director Tapas Datta said.

"The additional income generated from the increase in turnover fees will be credited to the settlement guarantee fund of the exchange," Datta said and was reported by PTI.

He said the increased rates would be charged from the member brokers from the settlement number 2002107 starting on May 4.

Datta said, "Effectively, the turnover fee will increase from Rs 250 per member on a turnover of Rs 10 million to Rs 500 per member on the same turnover."

He said the decision to this effect was taken in the last committee meeting of the exchange, which was fully attended except one member, S S Ahuja.

Dutta had earlier said that the exchange was considering a hike in rate of turnover tax being collected from its member brokers as part of its strategy to replenish trade guarantee fund.

"A proposal to the effect of hiking ToT rates is under consideration of the committee," Datta had said.

The exchange was also considering to file criminal cases against its leading defaulters, who owed about Rs 920 million to the exchange, to attach their personal properties for recovery of dues, he said.

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