The stock exchange has sought SEBI’s consent for ‘voluntary dissolution’
The Bangalore Stock Exchange (BgSE), which last month sought permission from market regulator, the Securities and Exchange Board of India (SEBI), for ‘voluntary dissolution’ has offered a voluntary retirement scheme (VRS) to its employees.
A BgSE source told The Hindu that its exit would result in the closure of several departments, which handled functions such as listing, membership registration, compliance, inspection, arbitration and several other areas related to the functioning of the regional stock exchange.
The sources said the stoppage of various fees that were collected earlier from members would result in “surplus” staff at the BgSE.
“The golden handshake is a goodwill gesture to employees,” C. Subramaniam, chief operating officer of the BgSE, told The Hindu.
“No other regional exchange has offered such a scheme to its employees,” he said.
The scheme is open to all employees of BgSE Ltd., barring the following: executive directors, those employed on contract, those on deputation from BgSE’s subsidiary BgSE Financials Ltd., those with less than 10 years of service and those below 40 years of age.
The BgSE Voluntary Retirement Scheme states that those who opt for the VRS will not be eligible for re-employment at either the BgSE or any of its subsidiaries at any time in the future. It is also clear that there would be no fresh recruitment to fill positions vacated by those opting for the scheme.
The scheme, which came into effect on Friday, closes on November 8, 2013.