SEBI reviews exit norms for SEs with less than Rs1,000-cr turnover

The Securities and Exchange Board of India (SEBI) has reviewed the exit rules for stock exchanges where the annual trading turnover is less than Rs1,000 crore.

If the stock exchange is not able to achieve the prescribed turnover of Rs1,000 crore on a continuous basis it should apply for voluntary surrender of recognition and exit before the expiry of two years, SEBI said in a circular today.

SEBI said if the SE fails to do so on its own, it will proceed with compulsory de-recognition and exit of such stock exchange, in terms of the conditions as may be specified by SEBI.

Stock exchanges, which are already de-recognised as on date, should make an application for exit within two months and such exchanges will be subjected to compulsory exit process if they fail to do so, SEBI said.

SEBI said it has now revised the exit policy for de-recognised and non-operational stock exchanges issued in December 2008.

Option on exclusively listed companies