The merger of the three regional exchanges, Ahmedabad Stock Exchange Limited (ASE), Vadodara Stock Exchange Limited (VSE) and Saurashtra and Kutch Stock Exchange (SKSE) is likely to be concluded over the next 18 months.
The three exchanges have decided to also merge their subsidiaries after the merger of the three exchanges.
Top officials from ASEL, VSEL and SKSE had met at Rajkot on Saturday to discuss merger activities.
"All the three subsidiaries will become one after ASE, VSE and SKSE merger. The entire process will take about 18 months to complete," said Hemantsingh Jhala, chairman and shareholder director at Ahmedabad Stock Exchange Limited.
He is also heading the committee 'Western Grid Regional Stock Exchanges' formed to undertake the merger related activities.
Legal advisors and counsels have already been appointed to prepare a presentation to make before the securities regulator, Securities and Exchange Board of India (SEBI). "Boards of the all three exchanges have given their in-principle consent for merger. But final decision will be taken after shareholders of all the three exchanges give their approval," said Sunil Shah and V P Vaishnav, directors of the SKSE Securities Limited.
However the name for the new exchange is not finalized yet but according to the officials it will have word 'Gujarat' in it. All the three exchanges of Gujarat are exercising for merger for over a month after SEBI’s new norms for regional exchanges.
According to SEBI circular, it is necessary for regional stock exchanges to achieve Rs 100-crore net worth or an annual turnover of Rs 1,000 crore annually to continue as an operational exchange.
However, it is difficult to achieve such turnover in regional stock exchanges space based on their present conditions. SEBI has already de-recognised SKSE in 2007, while ASE and VSE are exercising to fulfill the SEBI conditions.
