The Bangalore Stock Exchange (BgSE) has decided to exit from its business through voluntary surrender as a stock exchange since it might not be able to meet the mandatory compliances of market regulator Securities and Exchange Board of India (Sebi).
This decision by BgSE -- one of India's oldest regional stock exchanges -- is being taken after its talks with the National Stock Exchange (NSE) and Jignesh Shah promoted MCX-SX for a potential merger and business consolidation failed.
With this, the only surviving regional exchange in southern region will be Madras Stock Exchange.
BgSE said that it may not be able to comply with the 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 networth. In fact, the total income of the BgSE for the financial year 2012-13 was at Rs 5.40 crore as against Rs 4.95 crore in the previous fiscal.
Already, the 50-year old BgSE has sent a notice to its shareholders seeking their approval for voluntary surrender of recognition and exit as a stock exchange.