Hyd stock exchange faces derecognition threat

The 64-year-old Hyderabad Stock Exchange faces the threat of derecognition for failing to complete the demutualisation process by August 28, 2007, according to the guidelines of  the Securities and Exchange Board of India (Sebi).

Sebi had notified the scheme of corporatisation and demutualisation of stock exchanges on August 29, 2005. Under the scheme, the HSE has to induct non-trading shareholders to the extent of 51% of its equity capital within a span of one year, extendable by one more year.

Accordingly, the HSE, valued at Rs 340 crore, had called for bids to sell 1.49 million shares at a floor price of Rs 450 per share. The minimum lot  fixed for the bids was at 27,000 shares. However, there has been no response for the bid announcement despite the best efforts of the HSE.

The 292-member HSE currently has over 700 listed companies.