Sebi on Monday ordered the closure of 64-year old Hyderabad Stock Exchange (HSE) for failure to dilute 51 per cent of its equity share capital to investing public other than shareholders having trading rights on or before August 28, 2007.

Sebi had notified the scheme of corporatisation and demutualisation of stock exchanges on August 29, 2005. Under the scheme, HSE has to induct non-trading shareholders to the extent of 51 per cent of its equity capital within a span of one year, extendable by one more year.

HSE, which is valued at around Rs 340 crore, had called for bids to sell 1.49 million shares at a floor price of Rs 450 per share and the minimum lot fixed for the bids was at 27,000 shares. However, there has been no response for the bid announcement despite the best efforts of the HSE.