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Madras Stock Exchange is likely to wind up its trading platform operations following market regulator SEBI's directives to non-operational bourses to exit.
A top official of Madras Stock Exchange (MSE), who did not wish to be named, said a decision on "voluntary exit" was taken at the extraordinary general meeting held recently.
"Many investors wanted voluntary surrender of recognition as an exchange. It is nothing but an option to exit (from trading). This decision was taken at the EGM. However,I wish to say that even after the status is withdrawn, we will be offering financial services through our subsidiary MSE Financial Services," the official told PTI.
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He further said the "exit procedure" would take at least "six-eight months" and the stock exchanges would focus on offering financial services.
"Our plan of action is to enter into financial services."
The development follows similar moves by some other regional bourses to exit on directives by the Securities and Exchange Board of India (SEBI).
As per SEBI directives, regional stock exchanges should generate annual turnover of Rs 1,000 crore and have a networth of Rs 100 crore. If the exchanges failed to generate such amount of turnover and networth, they would consider "exiting" from trading options.
One of the oldest stock exchanges in the country, MSE was set up as the first bourse in South India in 1937.
Noting that MSE was already offering depository services to BSE and NSE, the official said MSE was generating good amount of business through that service.
On the presence of a large number of medium and small companies listed at MSE, he said with the help of BSE and NSE, Madras Stock Exchange would come out with additional features enabling them to get listed in BSE and NSE with a reasonable charge.
"We have asked SEBI to support us in this initiative. It is exclusively listed schemes," he said.
On how the bourse felt when voluntary exit option was preferred for MSE that has been operating for more than 75 years, the official said: "Of course, pain is also attached to it. We definitely share that feeling.
