 "Sebi de-recognises Delhi Stock Exchange")
The Securities and Exchange Board of India (Sebi) has withdrawn the recognition granted to Delhi Stock Exchange (DSE) upon finding 'serious' irregularities at the functioning of the exchange.
In its show cause notice in May, 2013, the capital market regulator had raised several issues related to discrepancies in allotment of rights issue, false certification regarding demutualisation process and irregularity in releasing the commission to the merchant banker, among others. It also had alleged that the exchange passed sensitive confidential information to media.
In its order, Sebi said that it will take all necessary steps consequential to the de-recognition. The order passed by Sebi's whole time member Prashant Saran, noted that DSE did everything contrary to what is expected from a stock exchange. "The activities of DSE were carried out in manner contrary to the interest of the investors. It is seen that the present management, even after getting to know about the irregularities committed by the erstwhile management, has not initiated any action," added the order.
The order has come into force with immediate effect.