Mumbai: SEBI Tuesday allowed Uttar Pradesh and Madhya Pradesh stock exchanges to exit the stock bourse business.
More than 14 bourses have been allowed by the Securities and Exchange Board of India (SEBI) to exit the capital markets space.
These include Madras Stock Exchange, Cochin Stock Exchange, Ludhiana Stock Exchange, Bhubaneswar Stock Exchange, Hyderabad Securities and Enterprise, Coimbatore Stock Exchange, and Bangalore Stock Exchange.
In two separate orders, the regulator said it has allowed Uttar Pradesh Stock Exchange (UPSE) and Madhya Pradesh Stock Exchange (MPSE) to exit the business.
While allowing their exit, SEBI has asked the two exchanges to comply with tax obligations, undertakings given to it, other consequential conditions and change their name.
With regard to MPSE, the regulator also asked it to provide required information to the Corporate Affairs Ministry on identifying vanishing companies that were listed on the bourse for inclusion in the list of vanishing companies maintained by the Ministry.
On June 30, 2014, UPSE shareholders had approved exiting as a stock exchange through voluntary surrender of recognition and a request in this regard was made to SEBI on July 1, 2014.
The recognition of UPSE was last renewed by SEBI for one year starting from June 3, 2013.
On May 24 last year, MPSE had made a request to SEBI for its exit as stock exchange.
As per SEBI norms, a stock exchange, whose annual trading turnover on its platform is less than Rs 1,000 crore, can apply for voluntary surrender of recognition and exit, while a bourse which fails to achieve a turnover of Rs 1,000 crore, would be subject to compulsory exit process.
