The Securities and Exchanges Board of India (SEBI) has
de-recognised the Hyderabad stock exchange as the bourse
failed to complete the process of selling 51-per cent
of the brokers'' stake to other entities as per schedule.
recognition granted to HSE stands withdrawn with effect
from 29 August, 2007," SEBI said in a release.
HSE was supposed to complete its demutualisation process
by 28 August as per SEBI rules.
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.
regulator had notified the Hyderabad Stock Exchange Ltd
(corporatisation and demutualisation) scheme, 2005 on
29 August, 2005, and so the bourse was mandated to complete
the process by August 28 this year.