Exit option for regional stock exchanges: conditions for asset retention, broker de registration and shareholder exit. Guidelines permit de recognised or surrendering Regional Stock Exchanges to retain assets subject to conditions: transfer Investor Protection and Services Funds and the 1% security deposit to SEBI's Investor Education and Protection Fund (with refund conditions for the 1% deposit); transfer outstanding statutory dues to SEBI; brokers cease to be trading members with automatic SEBI registration cancellation and remain liable for registration fees payable until de recognition, recoverable by the exchange and transferrable to SEBI. Exchanges continuing as companies must drop 'stock exchange' from names; exclusive issuers must seek new listing or provide shareholder exit under delisting norms; exchanges must reserve funds to settle pending claims and liabilities.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Exit option for regional stock exchanges: conditions for asset retention, broker de registration and shareholder exit.
Guidelines permit de recognised or surrendering Regional Stock Exchanges to retain assets subject to conditions: transfer Investor Protection and Services Funds and the 1% security deposit to SEBI's Investor Education and Protection Fund (with refund conditions for the 1% deposit); transfer outstanding statutory dues to SEBI; brokers cease to be trading members with automatic SEBI registration cancellation and remain liable for registration fees payable until de recognition, recoverable by the exchange and transferrable to SEBI. Exchanges continuing as companies must drop 'stock exchange' from names; exclusive issuers must seek new listing or provide shareholder exit under delisting norms; exchanges must reserve funds to settle pending claims and liabilities.
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