The Capital market regulator Securities and Exchange Board of India (SEBI) has allowed Hyderabad Securities and Enterprises Ltd (HSEL) to exit as a stock exchange.

“I am of the view that it is a fit case for allowing exit of HSEL (erstwhile Hyderabad Stock Exchange),” the SEBI Whole Time Member Rajeev Kumar Agarwal said in its order dated January 25.

“HSEL or its subsidiaries (if any) may continue to function as any other corporate entity or any other normal broking entity. Further, HSEL shall not use the expression ’stock exchange’ or any variant in its name or in its subsidiary’s name so as to avoid any representation of present or past affiliation with the stock exchange,” he added.

According to the order, the company complied with SEBI’s exit guidelines and paid the necessary dues to the regulator, including 10 per cent of the listing fee and the annual regulatory fee.

HSEL has shifted the companies listed exclusively on it to the dissemination Board of BSE Ltd, said SEBI.

The SEBI added that the company has set aside funds in order to provide for an ongoing arbitration case.

Besides, the exchange has paid an amount of Rs one crore to it for resolving investor complaints if any, that may arise in future.

Further, the HSEL has transferred Rs 3.09 crore available in its ‘Investor Protection Fund’ and ‘Investor Services Fund’ and one per cent security deposit amounting to Rs 82.76 lakh available with it to the SEBI’s Investor Protection and Education Fund (IPEF).

Earlier in August 2007, the SEBI had de-recognised Hyderabad Stock Exchange as a bourse for failing to dilute 51 per cent stake to non-brokers as mandated by the law. About 700 stocks were listed on the HSE, but daily trading is of insignificant value.

The SEBI noted that there are currently 25 Stock Exchanges across the country most of which are non-operational and only five have trading on their platform which includes NSE, BSE and MCX.

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