SEBI allows Hyderabad Securities and Enterprises to exit as bourse
28 January 2013
The Securities and Exchange Board of India (SEBI) has allowed Hyderabad Securities and Enterprises Ltd (HSEL), formerly Hyderabad Stock Exchange (HSE) to exit as a stock exchange, after the company complied with exit guidelines and paid the necessary dues to the capital market regulator.
HSE, the erstwhile Hyderabad Stock Exchange, has in a timely manner transferred an amount of Rs3,09,97,440 available in its 'Investor Protection Fund' and 'Investor Services Fund' and '1 per cent security deposit' amount of Rs82,76,166 available with it to the SEBI's IPEF, SEBI said in a release.
''HSEL has paid the necessary dues outstanding to SEBI, including 10 per cent of the listing fee and the annual regulatory fee, the outstanding registration fees of brokers/trading members (stock brokers and sub brokers) till the date of such de-recognition.
''HSEL has contributed an amount to Rs1,00,00,000 towards SEBI IPEF for resolving any investor plaints,'' SEBI said, adding that the company has set aside funds in order to provide for an ongoing arbitration case.
The companies listed exclusively on the exchange also stand shifted to the dissemination Board of BSE Ltd, SEBI said in a release.
''HSEL or its subsidiaries (if any) may continue to function as any other corporate entity or any other normal broking entity. Further, HSEL shall not use the expression 'stock exchange' or any variant in its name or in its subsidiary's name so as to avoid any representation of present or past affiliation with the stock exchange,'' the SEBI whole time member Rajeev Kumar Agarwal said in an order issued on 25 January.