Twitter
Advertisement

After Ahmedabad Stock Exchange, regional exchanges face the axe

VSE & S'rashtra Kutch Stock Exchange to shut down in four months.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Vadodara Stock Exchange (VSE) and Saurashtra Kutch Stock Exchange (SKSE) are also slated to shut down like the Ahmedabad Stock Exchange by March 31, 2014. This is part of the exit route planned by Sebi (Securities and Exchange Board of India) for the regional stock exchanges (RSE).

The 24-year-old SKSE has already agreed and started the process of making its exit while the youngest exchange, the 22-year-old VSE, has opted for legal action. Stakeholders, however, believe that they cannot fight longer against Sebi.

“How long can we fight against the market regulator,” said former VSE chairman Sudhir Shah. “Recently, a few officials came and told us to start the process of exit or de-recognition quietly and voluntarily, or else, the exchange would have to suffer losses,” he said.

If VSE supports Sebi by making a voluntary exit, the cost will be much less, said Shah. “Sebi officials told us that if we do not agree to their terms, the cost may rise 15 to 20 times and there will be a host of problems. However, as the brokers and shareholders are emotionally attached to the stock exchange, they still want to try the legal course,” he pointed out.

At present, the net worth of VSE is around Rs25 crore, said Shah. “Revival is not possible as we can neither have net worth of Rs100 crore nor can we generate a Rs1,000-crore turnover. Though the brokers want to fight, I do not know for how long they can do so,” he said.

In case of SKSE, the members have already announced the exit route. “We have started evaluation and soon the whole process will be announced,” said an SKSE official.

Since 2004, RSE across the country discontinued trading due to technical snags and other issues. Though all the exchanges decided to try to revive themselves, all the 16 exchanges, including three in Gujarat, are moving towards the exit one after the other.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement