11 bourses face risk of losing recognition: Sebi

11 bourses face risk of losing recognition: Sebi

Only eight stock exchanges enjoy ‘permanent’ recognition out of a total of 24 equity bourses in the country.

These ‘permanent’ bourses include Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Other bourses that have been granted this status by the Sebi include Ahmedabad Stock Exchange, Bangalore Stock Exchange, Calcutta Stock Exchange, Madhya Pradesh Stock Exchange, Madras Stock Exchange and Delhi Stock Exchange(DSE).

However, most of these bourses hardly witness any noticeable trading activity and DSE, which used to be a prominent bourse in the past, is currently trying to resurrect itself after remaining almost dormant for many years.

While the Sebi recognition currently stands expired for four stock exchanges, that for 11 others would need to be renewed over the next one year, as per the latest information disclosed by the it on the status of stock exchanges in the country. Those facing de-recognition during 2010 include Bhubaneshwar Stock Exchange, Cochin Stock Exchange, Guwahati Stock Exchange, Interconnected Stock Exchange of India Ltd, Ludhiana Stock Exchange, MCX Stock Exchange Ltd, OTC Exchange of India Ltd, Pune Stock Exchange and Uttar Pradesh Stock Exchange Association Ltd.  Besides, the recognition of Jaipur Stock Exchange and Vadodara Stock Exchange expires in January 2011.

Most of these bourses are granted recognition for one year, after which they need to seek a renewal. Among those facing risk of recognition expiry this year, Sebi last year renewed the recognition for MCX Stock Exchange (MCX-SX) for a period of one year, ending September 15, 2010, and was asked to comply with the regulatory criteria on necessary public shareholding by that date.
Currently, many of these regional bourses are seeking to resurrect themselves, while the larger bourses like NSE and BSE are also bracing themselves up for competition from newer players like MCX-SX.
Press Trust of India

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