Hyderabad Securities and Enterprises may continue to function as any other corporate entity or any other normal broking entity but would not use the expression “stock exchange” or any variant in its name or in its subsidiary’s name
Mumbai: Capital market regulator Securities and Exchange Board of India (SEBI) has allowed Hyderabad Securities and Enterprises (HSEL) to exit as a stock exchange, reports PTI.
“I am of the view that it is a fit case for allowing exit HSEL (erstwhile Hyderabad Stock Exchange),” SEBI whole-time member Rajeev Kumar Agarwal said in its order dated 25th January.
“HSEL or its subsidiaries (if any) may continue to function as any other corporate entity or any other normal broking entity. Further, HSEL shall not use the expression ‘stock exchange’ or any variant in its name or in its subsidiary’s name so as to avoid any representation of present or past affiliation with the stock exchange,” he added.
According to the order, the company complied with SEBI’s exit guidelines and paid the necessary dues to the regulator, including 10% of the listing fee and the annual regulatory fee.
HSEL has shifted the companies listed exclusively on it to the dissemination board of BSE, said SEBI.
SEBI added that the company has set aside funds in order to provide for an ongoing arbitration case.
Besides, the exchange has paid an amount of Rs1 crore to it for resolving investor complaints if any, that may arise in future.
Further, HSEL has transferred Rs3.09 crore available in its “Investor Protection Fund” and “Investor Services Fund” and 1% security deposit amounting to Rs82.76 lakh available with it to the SEBI's Investor Protection And Education Fund (IPEF)
Earlier in August 2007, SEBI had de-recognised Hyderabad Stock Exchange as a bourse for failing to dilute 51% stake to non-brokers as mandated by law. About 700 stocks were listed on the HSE, but daily trading is of insignificant value.
SEBI noted that there are currently 25 stock exchanges across the country most of which are non-operational and only five have trading on their platform which includes NSE, BSE and MCX.
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