The Securities and Exchange Board of India has withdrawn the recognition of watchdog from the Delhi Stock Exchange.
The capital market watchdog has also observed that activities of DSE were “carried out in a manner contrary to the interest of the investors.” Henceforth, hereby withdraw the recognition granted to Delhi Stock Exchange.”
Further, DSE acted in a irregular manner in case of “releasing the funds to the merchant banker, without receipt of the application money, allotment of shares to media company and in turn awarding them contracts.”
“It is seen that the present management, even after getting to know about the irregularities committed by the erstwhile management, has not initiated any sort of action,” the Securities and Exchange Board of India (Sebi) commented. “From the same, it can be concluded that DSE had failed to complete the demutualisation process before the ‘appointed date,” by the Securities and Exchange Board of India and therefore the SEBI had withdrawn the recognition.