Financial Daily from THE HINDU group of publications
Thursday, Sep 02, 2004
Financial Daily from THE HINDU group of publications Thursday, Sep 02, 2004 |
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Markets
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Regulatory Bodies & Rulings SEBI no to recognition of Mangalore SE
Our Bureau Mumbai , Sept. 1 THE Securities and Exchange Board of India (SEBI) has refused to grant renewal of recognition to the Mangalore Stock Exchange. SEBI's investigations of the exchange in August 2003 revealed that the exchange has not complied with conditions on which, the renewal of recognition was granted in 2002. Apart from this, it also observed major irregularities in the functioning of the exchange, specifically non-compliance with the stated investment policies and norms, drain of the exchange's resources, inadequate provisioning of software for trading system and failure to appoint Executive Director, among others. "Further, it was noticed that there was huge gap between the resources currently available and the requirements, in terms of manpower, material etc, to function as a stock exchange. There were lapses in its basic functions and instances of non initiation of effective steps for the general functioning and administration of the exchange in terms of the provisions of SEBI directives and circulars," says the order passed by Mr A K Batra, whole-time Member, SEBI. The order observed that mere existence of a stock exchange, without possessing such essential and basic requirements to function as one, would not have any meaning or serve any purpose towards protection of the interest of the investors and the development of the capital market as a whole. "The Exchange does not serve any economic purpose for existence as there is nil trading, no fresh listing etc," noted Mr Batra. The order will come into force in 3 weeks. In the interest of investors and shareholders of companies listed in the Mangalore Stock Exchange and in the overall interest of the securities market, the order contains certain directives regarding utilisation of investor protection fund and investor services cell of the exchange, pending claims of investors, pending arbitration cases, companies listed exclusively on the exchange and the status of stockbrokers of the exchange. The order is published on the SEBI Web site.
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