Finally there is some ray of hope for the Madras Stock Exchange, one of the oldest exchanges in India. Its Annual General Meeting will be held on September 30. Not just that. Recently, new directors have joined the MSE. The four – Kalpathi S. Suresh, S. Raamasubramanian, M. Amarnath and M Ravi -- have taken charge as shareholder directors. Shareholders feel that this is a balanced board.
Shareholders
“The board is in place now and the next priority is the AGM where we will chalk out plans for the future. The shareholders are also convinced about the new board,” said one of the members.
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The MSE exited business following an order by Market Regulator Securities and Exchange Board of India.
In July, it conducted a postal ballot to get shareholders’ approval for three special resolutions -- changing the name of the company to MSE Securities Limited, amending the memorandum of association (MOA) and adopting new articles of association (AOA). But they were turned down.
“Now with the new board, the shareholders also seem positive. They want to move ahead,” said another member of the Exchange. The members are also consolidating their shares. There were more then 225 shareholders and now it has come down to 200. “When there are less shareholders it is easier to get approvals,” some members feel.
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In 2012, SEBI passed an order mandating regional stock exchanges to have a minimum net worth of Rs. 100 crore and an annual trading volume of Rs 1,000 crore.
The market watch-dog gave a two-year window period for exchanges to comply or quit. In 2014 the MSE decided to exit and it sought permission from shareholders.
When MSE started its journey, it had 108 companies listed. In 1997, 1,784 firms were listed. Last year it had 1,079 listed entities. TTK Healthcare and Lakshmi Mills were among the listed companies.
“The board is in place now and the next priority is the AGM where we will chalk out plans for the future”