Hyderabad Stock Exchange gets de-recognized

webgeek

Sad to note that the Hyderabad Stock Exchange got de-recognized by SEBI. When Bombay Stock Exchange and National Stock Exchange and climbing up the ladder, our local Hyderabad Stock Exchange isn't able to withstand the tough competition..
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legend · Telugu Bidda Joined: 28 Jul 2007 Posts: 103

Signalling its resolve to ensure all stock exchanges sell 51 per cent of the brokers' stake to other entities within the time limit, market regulator SEBI has de-recognised the Hyderabad Stock Exchange as the bourse failed to complete the process as per schedule.
"The recognition granted to HSE stands withdrawn with effect from August 29, 2007," SEBI said in a release today.

The HSE was supposed to complete its demutualisation process by August 28 as per SEBI rules.

According to the Securities Contracts (Regulation) Act, 1956, every recognised stock exchange has to sell 51 per cent of its stake to non-brokers, a move called demutualisation, within 24 months after such a scheme is approved by SEBI.

The regulator had notified The Hyderabad Stock Exchange Ltd (Corporatisation and Demutualisation) Scheme, 2005 on August 29, 2005, and so the bourse was mandated to complete the process by August 28 this year.

HSE had invited Expressions of Interest from June 17 and set July 31 as the last date for receipt of payment for bids. However, as HSE could not divest the required equity capital to non-brokers by August 28, its Board of Directors had urged the SEBI to extend the deadline, which the regulator declined.

Trading at the bourse has already come to a halt and the bourse has not conducted any business since August 29.

A stock exchange can also sell up to 26 per cent stake to foreign direct investors and up to 23 per cent equity to foreign institutional investors. However, not more than five per cent of equity could be sold to a single entity.

Many bourses such as Bombay Stock Exchange and National Stock Exchange have completed the exercise, while others such as Delhi Stock Exchange are in the process of doing so.

bommasaniv · Posted: Thu Oct 04, 2007 2:25 am Post subject:

WOW, I never knew Hyd had a stock exchange Wink

Czar · Joined: 19 Sep 2007 Posts: 59

You are an Andhraite, how would you!

Its in Telangana.