The CSE is a novel concept created by students of IIM-A and IIT-Roorkee that allows cricket fans to trade virtual stocks of their favourite players online.
AHMEDABAD: Dalal Street may be experiencing a slowdown but the 'Cricket Stock Exchange' is shooting up.
The CSE is a novel concept created by the students of Indian Institue of Management-Ahmedabad (IIM-A) and IIT-Roorkee that allows cricket-crazy fans to trade virtual stocks of their favourite players online.
"www.crickstock.com is a virtual stock exchange created on the internet and has been modelled on the Bombay Stock Exchange (BSE)," said Rahul Roushan, a final year student of the post-graduate programme in management at IIM-A.
"It is a fun way to learn about how stock exchanges function," said Rahul who alongwith two of his IIM-A colleagues Karthik Laxman and Siddharth Murlidharan, teamed up with Mitanshu Garg, a third year student of IIT-R to set up the project.
Roushan said the idea of the project was to popularise stock exchanges through cricket which most Indians understand and at the same time create a mechanism which will reflect the feelings of cricket fans about a particular cricketer.
"Here we have allocated stock prices to about 150 international cricketers who feature in the 15-member World Cup squads of the Test-playing nations," he said.
"The stock prices have been allocated to cricketers based on their recent performance in the last 10 matches," he said.
"The idea is to capture the mood and sentiments of cricket fans and translate them into numbers which will be reflected in the stock prices," Rahul remarked.
"The only difference between this exchange and the BSE is that the money used in the trading of stocks and shares will be virtual.
"This will also help in keeping the exchange free from controversial issues like cricket betting," he added.
Like in a real stock exchange, Initial Public Offerings of all the 150 cricketers have been floated.
"A person who registers on the website gets virtual cash of Rs 10 lakh. This money can be used to buy shares of any number of cricketers," Rahul said.
"Right now people can register and bid in the IPO (till March 7) to get the shares of their favourite cricketers," he said adding that during the World Cup in the West Indies only simple trading of shares will take place.
"Once the World Cup is over, the secondary markets will open and then it will be the cricket fans who will decide the prices of stocks of all the cricketers," the IIM-A student said.
"Real-market parallels like mutual funds, options and futures will also be introduced into the exchange.
"You will get dividends based upon how your cricketers perform on the field and one can also earn capital gains by selling the shares of high-performing cricketers," he said.
At present, Sachin Tendulkar, Sourav Ganguly and Ricky Ponting are among the most favoured players on the stock exchange.
"Tendulkar's IPO has been oversubscribed 4.4 times while that of Ganguly has been oversubscribed four times," Rahul said.
The list of players on this exchange is a flexible one. When new players come into the 10 teams in upcoming tournaments, IPOs will be floated for them.
"We are also planning to add brief introductions to the cricketers with their career statitics. News and discussion forums will also be created when the users can post their views about the cricketers," he said.
"Though the exchange was launched on the internet on February 25, the response has been phenomenal," Rahul said, adding that over 2,000 internet users have already registered within the first week of its launch.
The bulk of those registered are from India but users from Pakistan, England, Australia, USA, Bangladesh, Sri Lanka have also logged on, he added.
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