Friday, June 15, 2012

SEBI to derecognise exchanges with Sub- Rs 1,000 Cr turnover

The stock market regulator Securities and Exchange Board of India (SEBI) will compulsorily derecognize exchanges with less than Rs 1,000 crore annual turnover and not applying for exit
within two years. Securities and Exchange Board of India (SEBI) in a circular has said that stock exchanges with an annual turnover of less than Rs 1000 crore are eligible to voluntarily exit. Derecognized exchanges need to file for exit within two months. Failure to do so would result in their compulsory exit. Exclusively listed companies on such exchanges has two options, The first is to list with a nationally present stock exchange. If a company fails to obtain listing, it would be traded
through a dissemination board set up by nationally present stock exchanges. These boards would match orders and enable trading, but would not issue contract notes and settle trades through their clearing house. Brokers of these exiting stock exchanges have been allowed to trade in nationally present stock exchanges through the former's subsidiaries.

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