The Securities and Exchange Board of India (SEBI) said that it allowed the Hyderabad Stock Exchange to exit as a stock exchange.
“In the first such case of the erstwhile Hyderabad Stock Exchange (now Hyderabad Securities and Enterprises Limited (HSEL), SEBI, has passed an order on January 25, providing the exit to HSEL,” said SEBI in a release.
SEBI had issued guidelines for the exit of stock exchanges in May 2012.
This contained details of the conditions for exit of de-recognised/non-operational stock exchanges, including treatment of assets of de-recognised exchanges and a facility of dissemination board for companies listed exclusively on such exchanges, while taking care of the interest of investors.
“HSEL has, in a timely manner, transferred Rs.3.09 crore available in its ‘Investor Protection Fund’ and ‘Investor Services Fund’ and security deposit’ of Rs.82.76 lakh available with it to the SEBI.” HSEL has contributed an amount to Rs.1 crore towards SEBI IPEF.
HSEL has shifted the companies listed exclusively on it to the dissemination board of BSE Ltd. It has also set aside funds to provide for an ongoing Arbitration case.
