CSE to start bond-trading via CSBL

Kochi: The Cochin Stock Exchange (CSE) will start bond-trading by the end of this fiscal, according to CSE president K V Thomas. Bond-trading will be done through Cochin Stock Brokers Limited (CSBL), the fully-owned subsidiary of the CSE.

CSBL will act as a platform for trading securities and bonds. This will help the government and public sector organisations to raise funds from the debt market. Bonds are considered more secure than equity shares.

"CSBL will act like a supermarket, accessible to common people for trading both in equities and bonds. This will create an awareness among the public about bonds and government securities" Thomas told domain-B.

CSBL plans innovative steps to revamp its business
The major development projects under consideration include derivative trading, net-trading, V-Sat-linking and opening of branches in all district head quarters of Kerala. CSBL, started in 1999, now has an average business of Rs 16 crore every day. The volume of business is expected to double by these measures.

CSBL was started at a time when regional stock exchanges were struggling for survival due to the overwhelming presence of the National Stock Exchange (NSE) and the Bombay Stock Exhange (BSE) in every nook and cranny of the country. Regional stock exchanges found it difficult to withstand the competition because they lacked an adequate liquidity.

The CSE, then, decided to take a membership in the NSE and the BSE through a subsidiary company. It was the first stock exchange in India to become a member in the NSE and the BSE through a subsidiary.

Thomas says CSBLs objective is to provide a safe and cost-effective trading and depository facility apart from offering personal attention to investors through a network of CSE brokers spread all over Kerala. CSBL is a member in Central Depository Services. "Our priority is: service and safety to investors funds. We provide efficient services and personal attention at attractive rates. We have experienced and competent stock exchange officials who can provide the best risk management available with the help of a software that has extensive features."

The outstanding facilities CSBL offers are: Fastest PayOut, Delivery Out, DP Facility, Early Payout, accepting scrip margin and providing the lowest brokerage in the industry. The brokerage charge is a mere 0.017 per cent. It also offers a unique insurance cover apart from cover for the client against loss due to sub-broker default.

This public limited company is managed by a team of professionals. As per Securities and Exchange Board of India (Sebi) guidelines, the trading people shall not hold charge of the CSBL office. It has a full-fledged computer department and a strong asset-base of own land and building that has an approximate market value of Rs 25 crore. CSBL provides Meta Stock and ERS Research Station two software tools to analyse technical and fundamentals, respectively. It has a good library and research centre, too.

CSE members are also CSBL shareholders. CSBL members can avail of NSE and BSE services by a nominal deposit of Rs 50,000 with CSBL. The present membership fee of the NSE is Rs 2 crore and of the BSE it is Rs 1 crore. The CSE has 508 registered members, but only half of them are active today.

CSBL expects to bring back business by attracting passive members through its various projects. The most ambitious among them is the plan to open up service centres in all district headquarters. These centres will be connected through V-Sat, so that members can do business from anywhere. Dialup services are also available at regional centres.

Connectivity support through the Asianet cable service is yet another major project on the anvil. This service is available in Cochin corporation limits. Members can avail of this through Asianet cables. It also plans to offer Internet-trading to its members in the near future.

CSE is planning to collaborate with the BSE training division and the School of Management of Cochin University for an academy of excellence.