Bangalore stock exchange to apply for de-recognition to Sebi

Shareholders of Bangalore Stock Exchange (BgSE) have authorised its governing body to apply for voluntary de-recognition as a stock exchange company.

“The shareholders approved the resolution authorising the governing board to apply for voluntary de-recognition of the BgSE to SEBI as a stock exchange company, co-terminus with any suitable tie-up/arrangement/MoU of business consolidation with one or more stock exchanges,” BgSE Executive Director Manjit Singh told PTI here.

This approval was made by shareholders at the Annual General Meeting held here yesterday, attended by about 100 out of 925 members.

The BgSE, that commenced business in 1963, will now function as a non-stock exchange company.

“BgSE will now function as a non-stock exchange company; … 11-member governing board has approved formation of a steering committee to decide the future course of action post the exit, including new lines of business,” said BgSE Chief Operating Officer C Subramaniam.

“BgSE’s trading subsidiary, BgSE Financials, will continue as an independent corporate broker,” he added.

Officials said: BgSE will send a formal letter about de-recognition to market regulator Securities and Exchange Board of India (Sebi) by next week.

The exchange had earlier said it may not be able to comply with SEBI’s mandate which envisages that a regional stock exchange should have Rs 1,000 crore annual turnover on its own trading platform and Rs 100 crore net worth.

PTI