sebi:WTM/RKA/MRD/47/2015

SEBI · SEBI · Rajeev Kumar Agarwal, Whole Time Member

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Exit allowed to Madras Stock Exchange Limited subject to conditions

Provisions invoked

• s. 19
• s. 11(1)
• s. 11(2)
• s. 13
• s. 45
• s. 47
• s. 4B(6)

Parties

• Madras Stock Exchange Limited

Holding

SEBI allowed the exit of Madras Stock Exchange Limited (MSE) in terms of clause 8 of the Exit Circular, 2012, subject to conditions including compliance with tax obligations, undertakings to SEBI, name change, and contribution to IPEF.

Full text

Exit Order in respect of Madras Stock Exchange Limited Page 2 of 6 (c) The quantum of assets for distribution will be available after payment of the following by the stock exchange: (i) Statutory dues including Income Tax; (ii) Transfer of Investor Protection Fund, Investor Services Fund, 1% security deposit available with the Exchange to SEBI Investor Protection and Education Fund (hereinafter referred to as the "IPEF"); (iii) The exiting exchange shall pay the following dues to SEBI:-  Dues outstanding to SEBI including 10% of the listing fee and the annual regulatory fee;  The outstanding registration fees of brokers/trading members of such de- recognised stock exchanges as specified in the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992, till the date of such de-recognition;  In case of any shortfall in collection of dues of the brokers to SEBI, the exiting Stock Exchange will make good the shortfall; (iv) Refund of deposit (refundable) to the stock brokers including their initial contribution/deposit to Settlement Guarantee Fund/Trade Guarantee Fund (SGF/TGF).

Exit Order in respect of Madras Stock Exchange Limited Page 3 of 6 assets of a stock exchange, I note that section 47(xiii) of the Income Tax Act, 1961 provides as under:-

Exit Order in respect of Madras Stock Exchange Limited Page 4 of 6 valuation of assets and liabilities of MSE. The valuation agency submitted its report vide letter dated July 22, 2014.

Source: SecMarx — sebi:WTM/RKA/MRD/47/2015. 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.