SEBI directs SKSE to speed up property assessment

Securities and Exchange Board of India (SEBI) has directed Saurashtra Kutch Stock Exchange (SKSE) for quick assessment of their properties. Following the SEBI's notice, the exchange authorities have decided to convene a board meeting next week, while the board of directors has written a letter to SEBI seeking time for a meeting.

Few days back, SEBI has given a notice to quick on exit policy as merger talks with other exchanges did not succeed.

"SEBI has asked us to start our valuation of properties under the exit policy. However, we will go to meet the SEBI officials to seek more time as we are still in talks with other exchanges for merger," said Sunil Shah, director of SKSE Securities Limited.

He said, "Following the notice, we have finalised three names of valuer and the final decision will be taken in the board meeting next week."

It may be noted that SEBI had derecognised SKSE in July 2007, on the grounds of vacuum at the top management level, inadequate infrastructure, broker's interference in the day-to-day operations of the exchange and the overall lack of interest of members to revive trading on the regional bourse.

A person close to SKSE said, "As we are already derecognised. So, we are also checking weather the exit policy applies on us or not with our legal advisor."

The idea of setting up a common stock exchange of the three Gujarat-based regional stock exchanges (RSEs) including Ahmedabad Stock Exchange Limited (ASE), Vadodara Stock Exchange Limited (VSE) and SKSE has been dropped as members of VSE did not agree on merger.

Now all the three exchanges are talking with other exchanges separately for merger. SKSE is now exploring possibility of a merger with the newly launched MCX Stock Exchange. It also considering to go with Inter-Connected Stock Exchanges (ICSE).