Mumbai: Sebi on Monday allowed Jaipur Stock Exchange Ltd (JSEL) to exit as a bourse from the nation's capital markets.
According to the Securities and Exchange Board of India (Sebi), JSEL has substantially complied with the conditions for its exit as per the regulator's framework and therefore "is a fit case to allow exit".
Sebi said JSEL had complied with the regulator's exit norms and made payment of necessary dues to the regulator, including 10 per cent of the listing fee and the annual regulatory fee.
"From the valuation report and undertaking dated February 13, 2015 of JSEL, it is observed that all the known liabilities have been brought out and that there is no future liability that is not known as on date," the regulator said in an order today.
Allowing its exit, Sebi has asked JSEL to comply with its tax obligations, change its name and not to use the expression "Stock Exchange" or any variant of this expression in its name as well as to avoid any representation of present or past affiliation with the stock exchange, in all media.
The central government had granted recognition to JSEL, as a stock exchange on January 9, 1989, initially for a period which was renewed from time to time.
The recognition of JSEL was last renewed by Sebi for a period of one year commencing on January 9, 2014 and ending on January 8, 2015.
In December 2008, Sebi had issued guidelines and laid down the framework for exit by stock exchanges.
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.
The shareholders of JSEL in its Extra Ordinary General Meeting held on April 5, 2014 passed the resolution to Sebi for exiting as a stock exchange through voluntary surrender of recognition.
