Mangalore Stock Exchange gets Sebi nod to exit business

Capital market regulator Sebi today allowed Mangalore Stock Exchange to wind up its business.
The bourse had sought Securities and Exchange Board of India (Sebi) approval for exit.
The bourse has been given the nod to wind up subject to certain conditions, according to a Sebi order.
Mangalore Stock Exchange (MGSE) is required to comply with its tax obligations, undertakings given by it to Sebi and with other consequential conditions of exit circular 2012.
Besides, the bourse should change its name and not use 'stock exchange' or any variant of this expression "in its name and to avoid any representation of present or past affiliation with stock exchange, in all media".

"From the valuation report and undertaking dated July 31, 2013 of MGSE, it is observed that all its known liabilities have been brought out and that there is no future liability that is not known as on date," the order said.
Besides, the bourse in December 2013 had also said that it desired to revert back to its previous "for profit" status in order to pursue other business objectives. At that time it was a non-profit company.
"... Two arbitration cases that were pending with MGSE at the time of its de-recognition in August 2004 were filed by its members against their clients and MGSE has no liabilities in that regard and it has also not received any claim from investors post its de-recognition," the order noted.