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| Calcutta Stock Exchange CEO Madhav Reddy (right) with Dhaka Stock Exchange MD Swapan Kumar Bala (left) in Calcutta on Friday. Picture by Kishor Roy Chowdhury |
Calcutta, Sept. 26: The Calcutta Stock Exchange (CSE) has entered into a memorandum of understanding with its Dhaka counterpart that will enable the two bourses to interact periodically and share knowledge and best practices to develop the capital market in both countries.
The scope of the tie-up can be widened to include inter-exchange collaborative endeavours, subject to regulatory approvals.
“Even though the two exchanges operate under different laws of our respective countries, this gives us an opportunity to share a common platform to disseminate knowledge in the stock exchange business,” said B. Madhav Reddy, managing director and chief executive of the CSE.
Swapan Kumar Bala, managing director of Dhaka Stock Exchange, said the co-operation would help to develop new products for the exchange.
According to officials of both the stock exchanges, as part of the Bangladesh-China-India-Myanmar Economic Connectivity Forum for Regional Co-operation, an organisation called the International Logistics & Finance Association (ILFA) was set up to facilitate trade and investment among the countries.
One of the aims of the ILFA is to explore the possibility of setting up a common platform for different international bourses.
Reddy said the CSE was trying to restart its own trading platform C-Star, which had been closed because the bourse did not have its own clearing corporation.
“We are hopeful of striking a deal with a clearing corporation soon,” Reddy said.
He added that the company was yet to sell its land on the EM Bypass, the proceeds of which would be utilised to pick up a stake in a clearing corporation.