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Coimbatore Stock Exchange (CSX) which was incorporated on July 09, 1991 has become the second regional stock exchange to exit the business.
The Hyderabad Stock Exchange was the first to do so earlier this year, in January.
The recognition of CSX was last renewed by Securities and Exchange Board of India for a period of one year on September 18, 2005.Pending litigation in the Madras High Court did not allow for further extension of its recognition.
The latest Sebi order mentions that the High Court of Madras disposed of a matter relating to the exchange on October 29, 2010.
“I note that CSX has substantially complied with the conditions contained in the 2012 Exit Circular subject to its undertakings. I, therefore, am of the view that it is a fit case to allow exit to CSX…” said the Sebi order.
Regional exchanges have been facing the heat after Sebi increased networth criteria and put in place a requirement for minimum trading on such platforms.
Sebi has asked that exchanges have a minimum networth of Rs 100 crore and a trading volume of at least Rs 1,000 crore.
Some exchanges are said to be exploring the merger route, while others are looking to raise capital to meet these requirements.
