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 interalia 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. Whole Time Member, SEBI, has passed an Order on April 05, 2013 providing the exit to Saurashtra Kutch Stock Exchange Limited. SKSEL is the third exchange to exit under this policy. Erstwhile Hyderabad Stock Exchange and Coimbatore Stock Exchange Limited have already been allowed exit on January 25, 2013 and April 03, 2013 respectively. Four 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. SKSEL has transferred an amount of Rs.69,08,125.41/- available in its ˜Investor Protection Fund™, Rs.87,33,500/- available in its ˜Investor Services Fund™ and ˜1% security deposit™ amount of Rs.17,13,000/- available with it to the SEBI Investor Protection and Education Fund(IPEF).
ii. SKSEL has paid the necessary dues outstanding to SEBI including 10% of the listing fee and the annual regulatory fee.
iii. SKSEL has paid an amount of Rs.84,20,194/- 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. SKSEL has contributed an amount to Rs.15,00,000/-, towards SEBI IPEF.
v. SKSEL has given an undertaking dated March 26, 2013 to clear the liabilities ,contingent liabilities and the Income Tax liability before the distribution of assets of SKSEL.
4. Pursuant to the said Order, SEBI directed SKSEL to :-
a) Comply with its tax obligations under Income Tax Act, 1961;
b) Comply with the undertakings given by it to SEBI;
c) Comply with other consequential conditions of 2012 Exit Circular; and
d) 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 media.
5. Further that the Income Tax Authorities and the State Government of Gujarat are being intimated about the exit of SKSEL, for appropriate action at their end.
The full text of the order is available for download