Gauhati Stock Exchange (GSE) has been granted Securities Exchange Board of India (Sebi) approval to exit the stock exchange business. GSE is the ninth stock exchange to shut operations after failing to meet the trading turnover and networth requirements for stock exchanges as prescribed by Sebi.
In 2012, Sebi had asked all exchanges to ensure a minimum annual trading turnover of Rs 1000 crore along with a minimum networth of Rs 100 crore. Exchanges unable to meet this norm were asked to exit the stock exchange business.
The decision to exit was taken by the board of directors at GSE in March 2013.
“From the valuation report and undertaking of GSE, 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. I note that GSE has substantially complied with the conditions contained in the Exit Circular, 2012 subject to its undertakings. I, therefore, am of the view that it is a fit case to allow exit to GSE...,” stated Sebi whole-time member Rajeev Kumar Agarwal in an order post on the Sebi website on Tuesday.
Hyderabad Stock Exchange, Coimbatore Stock Exchange, Inter-Connected Stock Exchange, Ludhiana Stock Exchange are some of the other exchanges which have shut shop in the last couple of years.