1. SEBI vide Circular dated May 30, 2012 had issued the Guidelines for exit of stock exchanges. This contained details of the conditions for exit of de-recognised/non-operational stock exchanges inter-alia including treatment of assets of de-recognised exchanges and a facility of dissemination Board for companies listed exclusively on such exchanges, while taking care of the interest of Investors.
2. Shri Rajeev Kumar Agarwal, Whole Time Member, SEBI, has passed an Order on April 03, 2013 providing the exit to Coimbatore Stock Exchange Limited. CSX is the second exchange to exit under this policy. Erstwhile Hyderabad Stock Exchange has already been allowed exit on January 25, 2013. Five more exchanges have also applied for exit under the aforementioned circular. These include recognized stock exchanges that are not operational.
3. In compliance with the Circular regarding the Exit of de-recognised/non-operational Stock Exchanges:
(i) CSX has transferred an amount of Rs.51,27,493 available in its ˜Investor Protection Fund™, Rs.32,41,994/- available in its ˜Investor Services Fund™ and ‘1% security deposit™ amount of Rs.20,73,890/- available with it to the SEBI IPEF.
(ii) CSX has paid the necessary dues outstanding to SEBI including 10% of the listing fee and the annual regulatory fee.
(iii) CSX has paid an amount of Rs.2,28,36,251/- towards the outstanding registration fees of brokers/trading members as specified in the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 till the date of such de-recognition.
(iv) CSX has contributed an amount to Rs.15,00,000/-, towards SEBI IPEF.
(v) CSX has given an undertaking dated March 21, 2013 to clear the liabilities, contingent liabilities and the Income Tax liability before the distribution of assets of CSX.
4. Pursuant to the said Order, SEBI directed CSX to :-
(a) Comply with its tax obligation under the Income Tax Act, 1961;
(b) Comply with the undertakings given by CSX to SEBI; and
(c) to change its name and not to use the expression “Stock Exchange” or any variant of this expression in its name and to avoid any representation of present or past affiliation with the stock exchange, in all the media.
(d) Further that the Income Tax Authorities and the State Government of Tamil Nadu are being intimated about the exit of CSX, for appropriate action at their end.
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The full text of the order is available for download
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