Cochin Stock Exchange

Cochin Stock Exchange (CSE or CoSE) was a stock exchange in Kochi, Kerala in India. Incorporated in 1978,[1] it had over 350[2] Indian companies listed at its peak, and during the 1990s, it was the fourth largest exchange in India by turnover, with a daily turnover of ₹70–₹100 crore (equivalent to ₹272 crore or US$40 million in 2013). The exchange stopped trading in 2005, and was in the final stages of closure by May 2014.[3]

Cochin Stock Brokers, which provides trading facilities on the Bombay Stock Exchange, and CSE Institute, an educational organisation, continue to operate beyond the closure of the exchange.

History

Computerized trading was introduced in 1997. The major back office system software used are NESS and BOSS respectively for NSE and BSE. The trading software used in CSBL is Multex. Traders are provided Meta Stock and ERS software, trading terminals and optical fiber connections.[4] DP holdings are maintained by demat services like CDSL.

The new millennium saw the stock exchange building being shifted from the old structure in downtown Cochin to a brand new building in the Kaloor area in northern Kochi.

Trading hours historically used to begin late in the afternoon enabling access to traders from other regions of the state. Base Minimum Capital required to be maintained is Rs. 2 lakhs.[5]

The securities scam of the early nineties led the Securities and Exchange Board of India (SEBI) regulations on stock exchanges requires separation of ownership and trading rights and made it mandatory for majority ownership rests with the public, those without any trading rights.[6]

The stock exchange was closed after the SEBI introduced a minimum net worth requirement of ₹100 crore (equivalent to ₹100 crore or US$15 million in 2013) and a turnover of ₹1000 crore (equivalent to ₹10 billion or US$150 million in 2013) for stock exchanges to continue operation.

Economic impact

Industrialisation did not happen in Kerala to the extent as in other Indian states. As a result, most Keralites do not invest in manufacturing entities. The reasons for the failure to attract manufacturing industries is unclear, but it has be due to the political climate and the lack of resources in a small state with such a large population density. The stock exchange is therefore an excellent channel for investment opportunities in the face of local problems.[7]

Related organisations

Cochin Stock Brokers Limited (CSBL) previously a wholly owned subsidiary of Cochin Stock Exchange Limited, is a corporate member of the National Stock Exchange of India and the Bombay Stock Exchange, enabling CSBL users to have trading facilities in these listings.[8]

CSE Institute is an organisation that provides stock market training for investors.

See also

References

  1. ↑ http://www.cochinstockexchange.com/CSE/profile.html
  2. ↑ http://www.cochinstockexchange.com/rates/closert.txt
  3. ↑ Joseph, George (2014-05-29). "Cochin Stock Exchange exit in final stages". Business Standard (Kochi: Business Standard Ltd). Archived from the original on 2014-05-31. Retrieved 2015-05-18.
  4. ↑ http://www.cochinstockexchange.com/CSE/departments/systemsdep.html
  5. ↑ http://www.cochinstockexchange.com/CSE/membership.html
  6. ↑ http://www.cochinstockexchange.com/cse/interpre.pdf
  7. ↑ 25: 17–19. JSTOR 4395768. Missing or empty |title= (help)
  8. ↑ http://www.cochinstockexchange.com/CSBL/ABOUT_CSBL.HTML

External links

This article is issued from Wikipedia - version of the Monday, April 18, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.