Date:29/08/2006 URL: http://www.thehindubusinessline.com/2006/08/29/stories/2006082900281300.htm

Back MCX keen to revive Calcutta Stock Exchange

Our Bureau

On the lines of Rajkot bourse revival

MCX plans to enter into an arrangement with the CSE to utilise the exchange's infrastructure. It will offer trading opportunities in equity and commodity markets.

Kolkata , Aug 28

Multi Commodity Exchange (MCX) has expressed interest in reviving the ailing Calcutta Stock Exchange (CSE) by introducing both the commodity spot and futures trading platforms along with equities.

Responding to a proposal from the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, on Monday, Mr Jignesh Shah, Managing Director and Chief Executive Officer of MCX, said CSE could be only be revived in the line of Rajkot Stock Exchange whereby CSE will offer opportunity to trade on both equity and commodity under one roof.

He was part of an Assocham delegation that met Mr Bhattacharjee and the West Bengal Finance Minister, Mr Asim Dasgupta. MCX will present a detailed blueprint on its proposal within a month.

Talking to newspersons, Mr Shah said MCX was not contemplating creation of separate commodity exchanges in the State but planned to enter into an arrangement with the CSE so that the infrastructure of the stock exchange could be optimised by offering trading opportunities in equity market as well as commodity market instruments. The commodity spot and futures instruments would be sponsored by MCX.

"We have a proposal in consideration it would be studied by Financial Technologies (the promoting company of MCX)," Mr Shah said adding that the West Bengal Government had expressed keep interest in the proposed initiative.

MCX had entered in to a tie - up with Rajkot Stock Exchange on these lines.

Talks with Bengal Govt

MCX is considering steps to emerge as a key exchange in the agri-commodity futures market - a domain dominated by NCDEX till now.

After doing the spadework for a year, MCX tested the waters in the agri-commodity futures market through mentha and potato (Agra variety) futures. The futures have drawn a good response. While the exchange is now working on a number of other agri-commodity future contracts, including the Bengal potato variety, its spot market arm NSEAP has been successful in roping in Kerala and Rajasthan Governments to launch spot markets on a number of agri-commodities covering wheat, spices and pulses.

The initiative could get a further boost if NSEAP rolls out a spot market in West Bengal, a major producer in a number of agro-commodities. According to sources, MCX and NSEAP officials are in advanced stage of discussion with the State government in this regard. Also the State Government has expressed its intention to reform the APMC to help build a credible spot market in the State to ensure better returns to the farmers.