Capital market regulator SEBI has allowed the Coimbatore Stock Exchange (CSX) to exit equity trading business.
The Securities and Exchange Board of India (SEBI) said that CSX has substantially complied with the conditions for its exit as per the regulator’s framework and therefore “is a fit case to allow exit”.
According to an order issued on Wednesday, the SEBI said CSX complied with the regulator’s exit guidelines and made payment of necessary dues to the regulator, including 10 per cent of the listing fee and the annual regulatory fee.
The SEBI said that among other things, the stock exchange has complied with the guidelines wherein it has stated that there are no arbitration disputes /investor complaints pending against it and would clear all the liabilities before distributing its assets.
“From the valuation report and undertaking dated March 21 , 2013 of CSX 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,” the SEBI said.
The regulator has asked the CSX to change its name and not to use the expression “Stock Exchange” or any variant of this expression in its name, among other things.
The CSX was granted recognition as a stock exchange on September 18, 1991.
As per SEBI, the recognition of CSX as a stock exchange was last renewed for a period of one year on September 18, 2005.
However, the CSX did not apply for renewal which expired on September 17, 2006.
Meanwhile in 2008, the SEBI issued norms wherein it laid down the framework for exit by stock exchanges whose recognition is withdrawn and/or renewal of recognition is refused by the regulator and who may want to surrender their recognition.
Following this, the CSX made a request to SEBI for its exit as stock exchange, in 2009.
Last year, the SEBI had extended the guidelines for exit to stock exchanges want to exit.
The SEBI noted that a total 87 members of CSX were in favour of its exit against one member who had raised objection to it.