Mumbai: The Securities and Exchange Board of India (Sebi) on Monday allowed the Hyderabad stock exchange to exit the exchange space, putting an end to a long-drawn legal battle between it and the regulator. This marks the first exit by a regional bourse after Sebi introduced exit norms for exchanges in May 2012.
The stock exchange’s recognition was withdrawn by Sebi after it failed to comply with corporatisation and demutualization rules. The exchange later changed its name to Hyderabad Securities and Enterprises Ltd and opted for a voluntary exit.
Sebi said the exchange has paid all dues and fees pertaining to the exit norms and to handle future liabilities.
Hyderabad Securities has given an undertaking that it is a functional subsidiary and is a corporate member of NSE, BSE and MCX and is providing trading facilities to all Hyderabad stock exchange members. The exchange has also given an undertaking that necessary statutory dues such as income tax will be paid by it before the disposal of any fixed asset, said a Sebi order.