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Time of India
05-08-2025
- Business
- Time of India
Calcutta Stock Exchange awaits Sebi decision on voluntary exit
1 2 Kolkata: Calcutta Stock Exchange (CSE) is waiting for a formal death sentence from market regulator Sebi. Established in 1908, CSE is the second oldest in India after BSE and one of the oldest stock exchanges in Asia. Union minister of state for finance Pankaj Chaudhary , during a reply in RS on Tuesday, said Sebi was examining a proposal from CSE for voluntary exit as an exchange. This means CSE would cease to exist as a stock exchange once the die is cast by Sebi. Chaudhary, replying to a question by Bengal BJP MP Samik Bhattacharya, said: "On Feb 18, 2025, CSE submitted a proposal for voluntary exit as a stock exchange under Sebi-prescribed Exit Policy for Stock Exchanges. The proposal is currently under examination." You Can Also Check: Kolkata AQI | Weather in Kolkata | Bank Holidays in Kolkata | Public Holidays in Kolkata Sources close to the development said that the beleaguered exchange had no options left. It had tried to float a clearing corporation to remain as a stock exchange and, for this, it wanted to sell a land parcel off EM Bypass for Rs 253 crore. But it did not get the requisite approvals. Incidentally, at one point in time between 1997 and 2000, CSE's daily turnover used to surpass BSE's on many days. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Villas in Dubai | Search Ads Get Info Undo "We can recount many such days when CSE's volume was only second to NSE's," said a former broker of CSE who is now enlisted in NSE. According to old-timers in CSE, the exchange used to clock an average daily volume of Rs 1,000 crore until mid-2001. "In one day in 2000, CSE booked a volume of Rs 2,000 crore," said a broker. The number of listed companies in CSE until 2005 was more than 4,000, which at that point was more than NSE's and almost equal to BSE's. Trading has been closed in CSE since 2013. The trading volume for the last financial year, 2012-13, was Rs 9,500 crore. Sebi, in view of non-compliance by CSE over applicable regulatory requirements and its exit circular dated May 30, 2012, initiated compulsory exit proceedings against the exchange in May 2015, Chaudhary added. In response, CSE filed writ petitions in Calcutta High Court challenging Sebi's action. "After a prolonged litigation, the Calcutta HC, by its order dated Feb 19, 2024, granted CSE a period of six months to either establish a clearing corporation or tie up with an existing one, in compliance with the Securities Contracts (regulation) (stock exchanges and clearing corporations) Regulations, 2018, failing which Sebi would be free to proceed in accordance with law," he added.
News18
26-06-2025
- Business
- News18
BSE Shares Down Over 1% As Sebi Slaps Rs 25 Lakh Penalty For Flouting Regulatory Norms
Last Updated: Shares of BSE declined over 1 per cent on Thursday morning after markets regulator Sebi slapped a Rs 25 lakh penalty on the stock exchange. BSE Share Price Shares of BSE declined over 1 per cent on Thursday morning after markets regulator Sebi slapped a Rs 25 lakh penalty on the stock exchange for failing to provide equal access to corporate disclosures to all stakeholders and take action against brokers with frequent modifications during trades. After a flat beginning to the trade, the stock later dropped by 1.47 per cent to Rs 2,748 on the NSE. The market regulator passed the order after an inspection conducted between February 2021 and September 2022. In a 45-page order on Wednesday, Sebi found that BSE's system architecture allowed its paid clients and internal listing compliance monitoring (LCM) team to access corporate announcements before the same were made public through its website, resulting in a breach of norms. The regulator also observed that the data dissemination process lacked safeguards to ensure simultaneous and equal access to all stakeholders, which is critical to maintaining market integrity and preventing unfair information advantage. Accordingly, Sebi concluded that BSE failed to comply with Regulation 39(3) of the Securities Contracts (Regulation) SECC (Stock Exchange and Clearing Corporations) Regulations, 2018, which mandates stock exchanges to ensure fair and transparent access to all users. It also noted that BSE did not establish a really simple syndication feed, which could have mitigated the risk of unequal access to corporate disclosures. Although the exchange later created a time gap to address the issue, Sebi held that such corrective action was taken only after the inspection highlighted lapses. Sebi also flagged serious shortcomings in BSE's monitoring of client code modifications, which are permitted only in case of genuine errors. BSE failed to initiate disciplinary action against brokers with frequent modifications and did not adequately monitor 'error accounts', raising concerns over the possibility of misuse and lack of due diligence in trades between unrelated institutional clients.
The Hindu
26-06-2025
- Business
- The Hindu
BSE shares down over 1% as Sebi slaps ₹25 lakh penalty for flouting regulatory norms
Shares of BSE declined over 1% on Thursday (June 26, 2025) morning after markets regulator Sebi slapped a ₹25 lakh penalty on the stock exchange for failing to provide equal access to corporate disclosures to all stakeholders and take action against brokers with frequent modifications during trades. After a flat beginning to the trade, the stock later dropped by 1.47% to ₹2,748 on the NSE. The market regulator passed the order after an inspection conducted between February 2021 and September 2022. In a 45-page order on Wednesday, Sebi found that BSE's system architecture allowed its paid clients and internal listing compliance monitoring (LCM) team to access corporate announcements before the same were made public through its website, resulting in a breach of norms. The regulator also observed that the data dissemination process lacked safeguards to ensure simultaneous and equal access to all stakeholders, which is critical to maintaining market integrity and preventing unfair information advantage. Accordingly, Sebi concluded that BSE failed to comply with Regulation 39(3) of the Securities Contracts (Regulation) SECC (Stock Exchange and Clearing Corporations) Regulations, 2018, which mandates stock exchanges to ensure fair and transparent access to all users. It also noted that BSE did not establish a really simple syndication feed, which could have mitigated the risk of unequal access to corporate disclosures. Although the exchange later created a time gap to address the issue, Sebi held that such corrective action was taken only after the inspection highlighted lapses. Sebi also flagged serious shortcomings in BSE's monitoring of client code modifications, which are permitted only in case of genuine errors. BSE failed to initiate disciplinary action against brokers with frequent modifications and did not adequately monitor 'error accounts', raising concerns over the possibility of misuse and lack of due diligence in trades between unrelated institutional clients.
NDTV
26-06-2025
- Business
- NDTV
SEBI Fines Rs 25 Lakh Penalty on BSE for flouting regulatory norms
New Delhi: Capital markets regulator Sebi on Wednesday slapped a Rs 25 lakh penalty on BSE for failing to provide equal access to corporate disclosures to all stakeholders and take action against brokers with frequent modifications during trades. The market regulator passed the order after an inspection conducted between February 2021 and September 2022. In a 45-page order, Sebi found that BSE's system architecture allowed its paid clients and internal listing compliance monitoring (LCM) team to access corporate announcements before the same were made public through its website, resulting in a breach of norms. The regulator also observed that the data dissemination process lacked safeguards to ensure simultaneous and equal access to all stakeholders, which is critical to maintaining market integrity and preventing unfair information advantage. Accordingly, Sebi concluded that BSE failed to comply with Regulation 39(3) of the Securities Contracts (Regulation) SECC (Stock Exchange and Clearing Corporations) Regulations, 2018, which mandates stock exchanges to ensure fair and transparent access to all users. It also noted that BSE did not establish a really simple syndication (RSS) feed, which could have mitigated the risk of unequal access to corporate disclosures. Although the exchange later created a time gap to address the issue, Sebi held that such corrective action was taken only after the inspection highlighted lapses. Sebi also flagged serious shortcomings in BSE's monitoring of client code modifications, which are permitted only in case of genuine errors. BSE failed to initiate disciplinary action against brokers with frequent modifications and did not adequately monitor 'error accounts', raising concerns over the possibility of misuse and lack of due diligence in trades between unrelated institutional clients. "...the role of stock exchanges as 'the first layer of oversight' is of much significance, while handling material price sensitive information about listed companies and their securities. "Therefore, as a premier recognised stock exchange, BSE must have internal controls on how to manage and handle such corporate announcements so as to ensure compliance with its obligations," Sebi's Quasi Judicial Authority Santosh Shukla said in the order. The availability of information about listed companies with LCM employees of BSE and its paid subscribers before it is available to general investors through its website has clearly impaired the concept of impartiality, transparency and fairness of information dissemination from the first level regulator BSE, Shukla said. Further, BSE has also displayed laxity and negligence, with respect to not supervising norms with regard to client code modifications as found, he added.
