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TMI BlogExit Policy for De-recognized/ Non-operational Stock ExchangesX X X X Extracts X X X X X X X X Extracts X X X X ..... 2.1 Exchanges may seek exit through voluntary surrender of recognition. 2.2 Stock exchanges where the annual trading turnover on its own platform is less than ₹ 1000 Crore can apply to SEBI for voluntary surrender of recognition and exit, at any time before the expiry of two years from the date of issuance of this Circular. 2.3 If the stock exchange is not able to achieve the prescribed turnover of ₹ 1000 Crores on continuous basis or does not apply for voluntary surrender of recognition and exit before the expiry of two years from the date of this Circular, SEBI shall proceed with compulsory de-recognition and exit of such stock exchanges, in terms of the conditions as may be specified by SEBI. 2.4 Stock Exchanges whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oard will be set-up by stock exchanges having nationwide trading terminals. 3.3 Dissemination Board: Under this mechanism, a willing buyer and seller will be given an opportunity to disseminate their offers using the services of brokers of stock exchanges hosting dissemination board. The mechanism of dissemination board shall be given wide publicity for the benefit of the investors of exclusively listed companies. Every stock exchange hosting a dissemination board shall clearly bring out the guidelines in respect of the Dissemination Board on its website. Features of Dissemination Board: i. Exiting Stock Exchanges will be required to enter into an agreement with at least one of the stock exchanges with nationwide trading termina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terminals through their subsidiary company, which will function as normal broking entity in terms of SEBI circular dated December 29, 2008. In case of de-recognition, subsidiary company shall continue to function as broking entities in compliance of, inter alia, the provisions of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992. 4.2. In case of de-recognition, the MoU mechanism, if any, between a stock exchange not having nationwide trading terminal and a stock exchange having nationwide trading terminal, shall be discontinued and in such cases the trading members of erstwhile stock exchanges will gain access to exchanges having nationwide terminals through membership of the existing subsidiary company. 5. Treatment of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -recognised stock exchanges shall not alienate any assets of the exchange without taking prior approval of SEBI. 6. Other Conditions: 6.1. The exchange shall transfer Investor Protection Fund, Investor Services Fund, 1% security deposit available with them to the SEBI IPEF. The 1% security deposit shall subsequently be returned to the issuer company in due course on satisfying the prescribed conditions. 6.2. The exchange shall pay following dues to SEBI: 6.2.1. The dues outstanding to SEBI including 10% of the listing fee and the annual regulatory fee. 6.2.2. 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as may be decided by SEBI in the interest of trade or in the public interest including securities market. 8. In case of stock exchange seeking exit, through voluntary surrender of recognition or after being compulsorily de-recognized by SEBI, an appropriate order shall be passed by SEBI. 9. Applicability This circular shall apply to: (i) Recognized stock exchanges (ii) Stock exchanges that stand de-recognised as on date of this circular (iii) Stock exchanges that have applied for derecognition/ exit as on the date of this circular 10. This circular is issued in exercise of powers conferred under Section 11 (1) and 11(2) (j) of the Securities and Exchange Board of India Act, 1992, read with Section 5 of the Securities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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