A fraction of members of the Vadodara Stock Exchange (VSE) Limited on Friday approached the Gujarat High court against the Extraordinary General Meeting (EGM) called by the board members where they propose to resolve in favour of derecognistion of the regional stock exchange.
A division bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala directed that other members of the VSE be made respondents in the case and issued them notice asking them to file reply to allegations raised by the petitioners. While the court did not direct cancellation of EGM called on July 16, it issue directed the VSE board members not to implement any resolution passed during the meeting. The court scheduled the matter for further hearing on August 1.
The present petition has been filed by over 50 broker members who have opposed the EGM called by the investor members of the stock exchange, claiming it to be illegal as a litigation opposing the SEBI's net worth criteria.
The VSE, a regional stock exchange, has been unable to meet guidelines issued by the Security and Exchange Board of India (SEBI) in May last year that mandates all stock exchanges to attain Rs 100-crore net worth and Rs 1,000 crore annual turnover, either themselves or through consolidation, to escape derecognition.
