Thursday, April 12, 2012

SEBI ISSUES NORMS FOR EXIT OF NON- OPERATIONAL STOCK EXCHANGES

The Securities and Exchange Board of India (SEBI) has said that a stock exchange without any trading at its own platform or where the annual trading is less than Rs 1000 crores, may apply for voluntary de-recognition and exit. If  the stock exchange eligible for voluntary de-recognition is not able to achieve a turnover of Rs 1000 crores on continuous basis or does not apply for voluntary de-recognition and exit within a period of two years from the date of notification, The Securities and Exchange Board of India (SEBI) shall proceed with the compulsory de-recognition and exit of such stock exchange. The Board also decided that the stock exchanges may be permitted to exit subject to certain conditions such as payment of statutory dues to the Securities and Exchange Board of India (SEBI) / Government contribution of certain percentage of assets of the exchange towards Investor Protection and Education Fund etc.

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