Hyderabad Stock Exchange will not use the expression “Stock Exchange” or any variant in its name so as to avoid any representation of present or past affiliation with the Stock Exchange
Market regulator Securities and Exchange Board of India (SEBI) said that it allowed the Hyderabad Stock Exchange to exit as a stock exchange. 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, MCX, USE and CSE, the SEBI circular said on Monday.
Hyderabad Stock Exchange (now Hyderabad Securities and Enterprises Limited), Whole Time Member, SEBI, has passed an order on January 25, 2013 providing the exit to HSEL, the circular said.
HSEL has in a timely manner transferred an amount of Rs. 30.9 million available in its ‘Investor Protection Fund’ and ‘Investor Services Fund’ and ‘1% security deposit’ amount of Rs. 8.2 million available with it to the SEBI IPEF. HSEL paid the necessary dues outstanding to SEBI including 10% of the listing fee and the annual regulatory fee. The stock exchange contributed an amount to Rs. 10 million, towards SEBI IPEF.
HSEL has shifted the companies listed exclusively on it to the dissemination Board of BSE Ltd. The stock exchange has set aside funds in order to provide for an ongoing Arbitration case.
Hyderabad Securities & Enterprises Limited or its subsidiaries (if any) may continue to function as any other corporate entity or any other normal broking entity, managed by its own board subject to compliance of applicable laws. HSEL is permitted to distribute its assets subject to certain conditions as laid down in the Exit Order as well as the other guidelines that may be issued by Government or any other statutory body. HSEL has submitted an undertaking to take care of the known future liabilities and that the necessary statutory dues like Income Tax would be paid by HSEL before the disposal of any Fixed Asset.
HSEL will 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, in all media. Further that the Income Tax Authorities and the State Government of Andhra Pradesh are being intimated about the exit of HSEL, for appropriate action at their end, the circular concluded.