Cochin Stock Exchange

Cochin Stock Exchange (CSE or CoSE) was an Indian stock exchange in Kochi, Kerala. It was incorporated in 1978. At its peak, it had almost 500 Indian companies listed, and with a daily turnover of ₹70–₹100 crore (equivalent to ₹480 crore or US$67 million in 2019), it was the fourth largest exchange in India. The exchange stopped trading in 2005, and closed in 2014.

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

Cochin Stock Exchange was established in 1978.[1]

During the 1990s, it was the fourth largest exchange in India by turnover, with a daily turnover of ₹70–₹100 crore (equivalent to ₹480 crore or US$67 million in 2019), with 476 Indian companies listed.[2][3]

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 was Multex, developed by CMC.[4] Traders are provided Meta Stock and ERS software, trading terminals and optical fiber connections.[5] DP holdings are maintained by demat services like CDSL.

The new millennium saw the stock exchange building being shifted from the old structure 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.[6]

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.[7]

The exchange stopped trading in 2005, and closing procedures after the SEBI introduced a minimum net worth requirement of ₹100 crore (equivalent to ₹137 crore or US$19 million in 2019) and a turnover of ₹1,000 crore (equivalent to ₹14 billion or US$190 million in 2019) for stock exchanges to continue operation in 2013. It was in the final stages of closure by May 2014.[8]

Economic impact

Industrialisation did not happen in Kerala to the extent as in other Indian states. The reasons for the failure to attract manufacturing industries was due to the political climate and the lack of resources in a small state with such a large population density. The stock exchange served as a channel for investors to find investment opportunities.[3]

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.[9]

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

See also

References
  1. "Archived copy". Archived from the original on 29 July 2010. Retrieved 28 July 2010.CS1 maint: archived copy as title (link)
  2. "Archived copy". Archived from the original on 12 February 2011. Retrieved 28 July 2010.CS1 maint: archived copy as title (link)
  3. "Of Cochin Stock Exchange and What It Means". 25: 17–19. JSTOR 4395768. Cite journal requires |journal= (help)
  4. "LSE Roundup". The Tribune. India. 23 July 2000. Retrieved 3 May 2018.
  5. "Archived copy". Archived from the original on 29 July 2010. Retrieved 28 July 2010.CS1 maint: archived copy as title (link)
  6. "Archived copy". Archived from the original on 3 August 2010. Retrieved 28 July 2010.CS1 maint: archived copy as title (link)
  7. "Archived copy" (PDF). Archived from the original (PDF) on 16 November 2009. Retrieved 28 July 2010.CS1 maint: archived copy as title (link)
  8. Joseph, George (29 May 2014). "Cochin Stock Exchange exit in final stages". Business Standard. Kochi: Business Standard Ltd. Archived from the original on 31 May 2014. Retrieved 18 May 2015.
  9. "Archived copy". Archived from the original on 12 August 2010. Retrieved 28 July 2010.CS1 maint: archived copy as title (link)
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