Sebi permits Bangalore Stock Exchange to exit

Sebi today allowed Bangalore Stock Exchange (BgSE) to exit as a bourse from the capital markets. According to the Securities and Exchange Board of India (Sebi), BgSE 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 BgSE 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 of BgSE, it is observed that all the known liabilities have been brought out and there is no other future liability that is known as on date," the capital market regulator said.

Giving it permission to exit, Sebi has directed BgSE to change its name and not to use the expression "Stock Exchange" or any variant of this expression in its name and to avoid any representation of present or past affiliation with the stock exchange, in all media, among others.

Additionally, BgSE has to provide details to the Ministry of Corporate Affairs on identifying vanishing companies which were listed on the exchange. The central government had granted recognition to BgSE as a stock exchange on March 17, 1963, initially for a period of 5 years, which was subsequently renewed from time to time.

The exchange was given permanent recognition in 1983. 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 BgSE in its annual general body meeting held on September 21, 2013 passed the resolution to apply to Sebi for exiting as a stock exchange through voluntary surrender of recognition.

Following this, BgSE had made a request to Sebi for its exit as stock exchange on October 8, 2013.