The Delhi Stock Exchange (DSE) governing board has deferred a decision on the demand of 48 of its members to call an extraordinary general meeting (EGM) to consider changes in the articles of association of the bourse.
A decision on whether the matter should be referred to the Sebi would be taken at the next meeting of the DSE board. Approval of Sebi would be necessary since the demand of the EGM pertains to certain issues on the basis of the which stock exchange was granted recognition, say sources.
The demand for the EGM has been put forth by 48 members of the stock exchange, including former president Paramjeet Singh, to incorporate certain changes in the bourses articles of association to streamline its functioning and conserve its resources.
In a signed letter addressed to the board of directors of the exchange, the members have alleged that the growth in the DSEs income is not commensurate with its expenditure.
They have expressed the fear that the bourses income would dwindle further due to decrease in fresh listings, increased delisting and declining interest rates. However, certain sections say that fresh listings at the bourse have gone down mainly because the primary market is dead. They also point out that collection of listing fee from the companies already listed has gone up.The consent of 75 per cent of the members at the EGM will be required to push through the proposals. The stock exchange has 375 members in all.
