SEBI has asked Vadodara Stock Exchange to change its name and not to use the expression "stock exchange" or any variant of this expression in its name and to avoid any representation of present or past affiliation with the stock exchange
Markets regulator Securities and Exchange Board of India (SEBI) has allowed Vadodara Stock Exchange to exit the stock bourse business. VSEL is the seventeenth Stock Exchange to exit under this policy.
VSEL had complied with the regulator's conditions for exit and is therefore "a fit case to allow exit" from capital markets, and the Exchange had made payment of necessary dues to the regulator, including 10% of the listing fee and the annual regulatory fee, SEBI said in an order.
It said, "From the valuation report and undertaking of the (VSEL), it is observed that all the known liabilities have been brought out and that there is no other future liability that is known as on date".
Allowing the exit to the VSEL, SEBI has asked the bourse to change its name and not to use the expression "stock exchange" or any variant of this expression in its name and to avoid any representation of present or past affiliation with the stock exchange, in all media, among others.
The decision by Sebi comes after VSEL had made a request to the markets regulator to exit as bourse.
SEBI with its circular dated 30 May 2012 had issued the guidelines for exit of stock exchanges. This contained details of the conditions for exit of de-recognised/non-operational stock exchanges and the treatment of assets of de-recognised/non-operational exchanges. It also provided a facility of Dissemination Board for companies listed exclusively on such exchanges, while taking care of the interest of investors.
Bourses that made the exit from the capital market so far include Uttar Pradesh Stock Exchange, Madhya Pradesh Stock Exchange, Madras Stock Exchange, Cochin Stock Exchange, Ludhiana Stock Exchange, Bhubaneswar Stock Exchange, Hyderabad Securities and Enterprise, Coimbatore Stock Exchange and Bangalore Stock Exchange, among others.
Further, the Income Tax Authorities, Ministry of Corporate Affairs and the State Government of Gujarat are being intimated about the exit of VSEL, for appropriate action at their end, added the SEBI press release.