Mumbai, Sep 3 (UNI) Securities and Exchange Board of India (SEBI) has withdrawn recognition granted to Hyderabad Stock Exchange (HSE), as it had failed to dilute 51 per cent of its equity share capital to public other than shareholders having trading rights on or before August 28, 2007.
The SEBI's de-recognition to the HSE was effective from August 29, 2007.
The SEBI has withdrawn the recognition of the HSE in terms of section 5(2) of the Securities Contracts (Regulation) Act, 1956 (SCRA), the market regulator said in a release here today.
SEBI had notified The HSE Ltd. (Corporatisation and Demutualisation) Scheme, 2005 on August 29, 2005.
As per SCRA, every recognized stock exchange whose scheme for corporatisation and demutualisation has been approved by SEBI shall ensure that at least fifty-one per cent of its equity share capital is held by the public other than shareholders having trading rights, within twentyfour months from the date of publication of the scheme. However, the HSE failed to fulfill the SEBI requirement.
UNI
The SEBI's de-recognition to the HSE was effective from August 29, 2007.
The SEBI has withdrawn the recognition of the HSE in terms of section 5(2) of the Securities Contracts (Regulation) Act, 1956 (SCRA), the market regulator said in a release here today.
SEBI had notified The HSE Ltd. (Corporatisation and Demutualisation) Scheme, 2005 on August 29, 2005.
As per SCRA, every recognized stock exchange whose scheme for corporatisation and demutualisation has been approved by SEBI shall ensure that at least fifty-one per cent of its equity share capital is held by the public other than shareholders having trading rights, within twentyfour months from the date of publication of the scheme. However, the HSE failed to fulfill the SEBI requirement.
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