Sunday, June 15, 2014

Compulsory Derecognition of Stock Exchange

The Securities & Exchange Board of India (SEBI) has held that if a stock exchange is not able to achieve the prescribed turnover of ` 1000 Crore on continuous basis or does not apply for voluntary surrender of recognition and exit before the expiry of two years from the date of SEBI circular dated May 30, 2012 (Exit Circular), SEBI shall proceed with compulsory de-recognition and exit of the stock exchanges, in terms of the conditions as may be specified by SEBI. As per the ‘Exit Circular’ the exclusively listed companies, which fail to obtain listing on any other stock exchange, which do not voluntary delist or which are not considered as ‘Vanishing companies’, will cease to be listed company and will be moved to the dissemination board.

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