sebi:WTM/RKA/MRD/08/2015
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Facts / Headnote
Exit allowed
Provisions invoked
- s. 19
- s. 11(1)
- s. 11(2)
- s. 45
- s. 47
- s. 4B(6)
Parties
- Bhubaneswar Stock Exchange Limited
Holding
SEBI allowed the exit of Bhubaneswar Stock Exchange Limited as a stock exchange, directing it to comply with its tax obligations under the Income Tax Act, 1961, its undertakings given to SEBI, other consequential conditions of the 2012 Exit Circular, and to change its name and not use the expression "Stock Exchange" in its name.
Full text
Exit Order in respect of Bhubanesawr Stock Exchange Limited Page 2 of 6 the Stock Exchange under section3 of the SCRA read with rule 7 of the SCRR. In this regard, vide letter dated March 24, 2014, SEBI informed BhSE that its application for renewal of recognition could not be processed as BhSE's application for voluntary exit was under process.
Exit Order in respect of Bhubanesawr Stock Exchange Limited Page 3 of 6 trading terminals. The exiting stock exchange as well as exchange providing dissemination board will give wide publicity about the dissemination board in one leading national daily and one local daily. (f) The exiting stock exchange shall set aside sufficient funds in order to provide for settlement of any claims, pertaining to pending arbitration cases, arbitration awards, not implemented, if any, liabilities/claims of contingent nature, if any, and unresolved investor complaints/grievances lying with it. (g) The exiting exchange may provide trading opportunity to their trading members to trade on stock exchanges having nationwide terminals through their subsidiary company, which will function as a normal broking entity.
Exit Order in respect of Bhubanesawr Stock Exchange Limited Page 4 of 6 9. The corporatisation and demutualisation scheme of BhSE was approved by SEBI vide notification SEBI/MRD/DSA/105441/2007 dated October 09, 2007 (hereinafter referred as "the scheme"). The scheme, inter alia, provided for the segregation of ownership and management from the trading rights of the members, restriction on voting rights of shareholders who are also trading members, composition of the Governing Board etc. in accordance with the provisions of section 4B(6) of the SCRA, utilization of assets and reserves and other matters required for the purpose of and in connection with the corporatisation and demutualisation of BhSE.
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Source: SecMarx — sebi:WTM/RKA/MRD/08/2015. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.