Mumbai: Market regulator Sebi today allowed Bhubaneswar Stock Exchange (BhSE) to exit from the stock exchange business, after it settled its liabilities and complied with the necessary conditions.
The Securities and Exchange Board of India (Sebi) said the BhSE has substantially complied with the conditions for its exit as per the regulator's framework and therefore "is a fit case to allow exit."
In an exit order in this regard, Sebi said BhSE complied with the regulator's exit guidelines and made payment of necessary dues to the regulator, including 10 per cent of the listing fee and the annual regulatory fee.
Among other things, Sebi said, the stock exchange has complied with the guidelines wherein it has stated that there are no arbitration disputes/investor complaints pending against it.
"From the valuation report and undertaking of BhSE, 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," Sebi said.
The regulator has asked the BhSE to change its name and not to use the expression "stock exchange" or any variant of this expression in its name, among other things.
The BhSE was granted recognition as a stock exchange on June 5, 1989. As per Sebi, the recognition of BhSE as a stock exchange was last renewed for a period of one year on June 5, 2013.
Sebi, in May 2012, had issued the guidelines for exit of stock exchanges. This contained details of the conditions for exit of de-recognised or non-operational stock exchanges inter-alia including treatment of assets of the bourse and a facility of dissemination board for companies listed exclusively on such exchanges, while taking care of the interest of investors.
Following this, BhSE made a request to Sebi for its exit as stock exchange.
Earlier, Sebi had allowed Hyderabad Securities and Enterprise, Coimbatore Stock Exchange, Inter-connected Stock Exchange, Ludhiana Stock Exchange, Cochin Stock Exchange and Bangalore Stock Exchange and Gauhati Stock Exchange to exit as a bourse. SP BJ