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
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
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
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
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
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