Capital market regulator Sebi has allowed the Pune Stock Exchange (PSE) to exit stock bourse business.
According to the Securities and Exchange Board of India (Sebi), the PSE had complied with the regulator's conditions for exit and is therefore "a fit case to allow exit" from capital markets.
The market watchdog said the PSE had made payment of necessary dues to the regulator, including 10 per cent of the listing fee and the annual regulatory fee.
"From the valuation report and undertaking of the PSE, it is observed that all the known liabilities have been brought out and that there is no other future liability that is known as on date," Sebi said in its order yesterday.
Allowing the exit to the PSE, Sebi has asked the bourse to 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, among others.
The central government had granted recognition to the PSE, as a bourse on September 2, 1982 initially for a period of five years, which was subsequently renewed from time to time.
The Pune Stock Exchange, in January last year, had made a request to Sebi to exit as bourse.
As per Sebi norms, a stock exchange, whose annual trading turnover on its platform is less than Rs 1,000 crore, can apply for voluntary surrender of recognition and exit, while a bourse which fails to achieve a turnover of Rs 1,000 crore, would be subject to compulsory exit process.
Earlier, Sebi had allowed various stock exchanges including OTC Exchange of India, Cochin Stock Exchange, Ludhiana Stock Exchange, Gauhati Stock Exchange, Bhubaneswar Stock Exchange, Hyderabad Securities and Enterprise, Coimbatore Stock Exchange, Inter-connected Stock Exchange, and Bangalore Stock Exchange to exit from the bourse business.
