Sebi permits Ahmedabad Stock Exchange to exit stock bourse biz

Markets regulator Sebi today allowed Ahmedabad Stock Exchange Ltd (ASEL) to exit the bourse business following a request from the exchange.

The bourse made a request to Sebi for its exit as stock exchange in July, 2014, informing the regulator that the shareholders of ASEL opted for voluntary exit from the business of stock exchange and surrender its recognition.

In an order, Sebi said ASEL 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 has said the exchange 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.

Among other things, the regulator said the stock exchange has complied with the guidelines wherein it has stated that there are no arbitration disputes and investor complaints pending against it.

"From the valuation report and undertaking of ASEL, 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," Sebi said.

Accordingly, the regulator has allowed the exit of ASEL as a stock exchange. However, it 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, among other things.

ASEL (formerly known as The Stock Exchange Ahmedabad) was recognised as a stock exchange by the central government in September 1957 and was granted permanent recognition in March, 1982 by the government.