Vadodara Stock Exchange gets Sebi nod to exit bourse business

The Securities and Exchange Board of India (Sebi) has allowed Vadodara Stock Exchange to exit the stock bourse business. More than two dozen bourses have been allowed by the Sebi to exit the capital markets space.

These include Uttar Pradesh Stock Exchange, Madhya Pradesh Stock Exchange, Madras Stock Exchange, Cochin Stock Exchange, Ludhiana Stock Exchange, Bhubaneswar Stock Exchange, Hyderabad Securities and Enterprise, Coimbatore Stock Exchange and Bangalore Stock Exchange, among others. According to 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.

According to the Sebi, VSEL had complied with the regulator's conditions for exit and is therefore "a fit case to allow exit" from capital markets.

The market watchdog said VSEL had 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 (VSEL), 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 had said in its order on Monday.

Allowing the exit to the VSEL, Sebi has asked the bourse 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.

The decision by the Sebi comes after VSEL had made a request to the markets regulator to exit as bourse.

The central government had granted recognition to VSEL as a bourse on January 1990, which was needed to subsequently renewed from time to time under the Securities Contracts Regulation.

The recognition of VSEL was last renewed by Sebi for a period of one year starting from January 4.