CSE turns to real estate to boost revenues

Company to develop freehold hand in Rajarhat and leasehold plot off EM bypass

By A staff reporter in Calcutta
  • Published 7.11.18, 11:53 PM
  • Updated 8.11.18, 3:11 PM
  • 2 mins read
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Calcutta Stock Exchange building Telegraph file picture

The Calcutta Stock Exchange (CSE) has invited expressions of interest (EoIs) to develop a 5-acre land in its possession at New Town, Rajarhat, as an alternative to increase its revenue and net worth.

The ailing bourse has floated a tender for EoIs from developers either in a revenue share or an area-share basis. The piece of land is at a prime location at New Town’s Action Area II.

The last date for the submission of the EoIs has been extended to November 12. It had secured the freehold land from West Bengal Housing Infrastructure Development Corporation Ltd in 2010 for the construction of building and business activities.

The tender document says a developer/investor will be selected on the basis of the highest additional area (as a percentage of the total built-up area) or the highest revenue share (as a percentage of the gross revenue from the project) they can offer in the project over and above the mandatory delivery of 1,00,000 square feet. Sources said the CSE will use the fixed area for its own business, while the remaining can be used for commercial purpose.

The stock exchange was incidentally in possession of 10 acres of land off EM Bypass on lease from the Calcutta Municipal Corporation. This was later brought down and an alternative parcel of land was given to the exchange in New Town.

However, in 2012, Sebi had come up with guidelines with exit options for various stock exchanges, and non-compliant bourses in terms of annual trading turnover were asked to close down. Accordingly Sebi had asked the CSE to start the exit process.

The regional bourse, while legally challenging the decision of the regulator, took a strategy to utilise the additional land in its possession.

“As an alternative source for augmentation of its revenue and net worth, the company (CSE) is also contemplating to develop its freehold land at Rajarhat and is in talks for evaluating the commercialisation of its leasehold land at EM Bypass in Calcutta,” the exchange said in its annual report of 2017-18.

“Due to the restrictions imposed in the wake of the exit circular, Sebi is not entertaining registration of fresh entities as trading members of the company and hence, the company couldn’t increase the number of its Sebi-registered members during the current financial year,” the report said.

At the end of March 31, 2018, 2,386 companies were listed with the exchange.

The bourse has also approved voluntary delisting of 53 companies last fiscal.