Cochin Stock Exchange (CSE) is counted among one of the premier Stock Exchanges in India. It was established in 1978 and had undergone tremendous transformation over the years. In 1978, it had only 5 companies listed and had only 14 members. Currently, it has 508 members and 240 listed companies.
Cochin Stock Exchange went for computerization of its offices in 1989. To keep pace with the market, it took various initiatives, one such initiative was trading dematerialised shares. It introduced the facility of computerised trading known as "Cochin Online Trading" (COLT) on March 17, 1997. It also became one of the promoters of the Interconnected Stock Exchange of India (ISE). The basic idea of ISE was to consolidate the smaller and fragmented markets which are less liquid into a national level integrated liquid market.
At present Cochin stock Exchange is having 508 members. Each share of the members carries a value of Rs 1250. The paid up capital is Rs. 580,850 and the authorised capital is Rs. 10,00,000 with the total membership limited to 1000.
According to the norms of SEBI, Cochin Stock Exchange charges an initial deposit of Rs. 2 lakhs from its members. Each member has to contribute additional deposits based on the volume of trade. Along with this there is a monthly subscription fee of Rs. 200 and Rs. 500 for individual and corporate members respectively. The members can appoint assistants or sub-brokers based on the guidelines provided by SEBI.
Each member has to pay an annual amount of Rs. 5000 during the five years of membership to SEBI as advance payment on or before 1st October of each financial year. From the 6th to 10th year of membership, the total amount payable is Rs. 5000 being payable at the beginning of the 6th year, which is counted as payment of Rs. 1000 per annum. More to this, if the previous year's turnover is more than 1 crore, a 0.01% of the exceeding amount should be paid to SEBI.
CSE maintains a separate legal department which is headed by Manager-Legal. It advises the management about the merits and demerits of legal issues including the exchange. The department's major function is to bring to notice to members and the investing public about the different rules, regulations and directives of SEBI with regard to trading in the capital market by the brokers and sub-brokers.
The areas which are being looked after are:
The Institute educate members, investors and general public. It offers four essential modules. They are as follows:
A software called MULTEX is given to all brokers. The brokers can simultaneously access to BSE and NSE terminals. To analyse the market trends, the exchange has provided a software package known as Meta Stock and ERS. It has gained wide acceptance from members, investors and students from various institutes.
The exchange maintains a good library with over 2500 books, journals, business magazines and reports. Beside all these, it also maintains various committees for the betterment of the brokers, public and other associated with the exchange. An optical fiber connection has been laid down by Asianet Satellite Telecommunications to facilitate more trading options.
Cochin Stock Exchange Ltd.