Refusal of renewal of recognition: exchange derecognized for governance failures, non-compliance and systemic risks threatening investor protection. SEBI refused renewal of recognition to the Mangalore Stock Exchange due to substantial non compliance with 13 of 18 inspection recommendations (including failure to establish a Settlement Guarantee Fund, fill the Executive Director post appropriately, enforce Base Minimum Capital provisions, transfer prescribed amounts to the Investor Protection Fund, and update software for the T+3 settlement cycle), together with separate serious irregularities-imprudent concentrated investments, authorization of cheque signing to temporary staff, misuse of exchange infrastructure benefiting select members, indirect refunding of non refundable entry fees, and unauthorized sub terminal access-culminating in a determination that MGSE's governance and operations threatened investor interests and orderly market functioning.
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.
Refusal of renewal of recognition: exchange derecognized for governance failures, non-compliance and systemic risks threatening investor protection.
SEBI refused renewal of recognition to the Mangalore Stock Exchange due to substantial non compliance with 13 of 18 inspection recommendations (including failure to establish a Settlement Guarantee Fund, fill the Executive Director post appropriately, enforce Base Minimum Capital provisions, transfer prescribed amounts to the Investor Protection Fund, and update software for the T+3 settlement cycle), together with separate serious irregularities-imprudent concentrated investments, authorization of cheque signing to temporary staff, misuse of exchange infrastructure benefiting select members, indirect refunding of non refundable entry fees, and unauthorized sub terminal access-culminating in a determination that MGSE's governance and operations threatened investor interests and orderly market functioning.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
