Mumbai: The Securities and Exchange Board of India (Sebi) has approved the exit plan of OTC Exchange of India (OTCEI), making it the 12th bourse to exit under the policy announced by the capital market regulator in May 2012.

As per Sebi guidelines, an exchange that fails to achieve an annual trading turnover of at least 1,000 crore is required to apply to the regulator for voluntary surrender of recognition and exit. OTCEI was established on 25 September 1990.

“From the valuation report and undertaking of OTCEI, it is observed that all the known liabilities have been brought out and that there is no other future liability that is known as on date. I note that OTCEI has substantially complied with the conditions contained in the Exit Circular, 2012 subject to its undertakings. I, therefore, am of the view that it is a fit case to allow exit to OTCEI," said a five-page order issued on Wednesday by Sebi whole-time member Rajeev Agarwal.

As per the order, OTCEI has transferred a total of 6.88 crore to Sebi’s Investor Protection and Education Fund (IPEF), as mandated by the regulatory framework for exit of stock exchanges. The exchange has also paid the outstanding registration fees of brokers/sub-brokers amounting to 1.77 crore.

OTCEI has also submitted an undertaking stating that there are no arbitration disputes or investor complaints pending and that it will undertake to clear all the liabilities before distribution of its assets.

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