NEW DELHI, May 4: Licences of six bourses, including MCX-SX Exchange and UP Stock Exchange, will come up for renewal this year.
Among these, the licences of UP Stock Exchange and Bhubaneswar Stock Exchange are expiring on June 2 and June 4 respectively.
Other exchanges whose permits are up for renewal this year include OTC Exchange of India (August 22), Pune Stock Exchange (September 1), MCX-SX Exchange (September 15) and Inter-Connected Stock Exchange of India (November 17).
Except MCX-SX, which began operations as a full fledged stock exchange in February last year, the cash market turnover of these bourses is ‘nil’ implying them to be either non-operational or having negligible business.
MCX-SX, a Financial Technologies-promoted exchange, had earlier got its licence renewed on September 12, 2013.
Meanwhile, licences of three other stock exchanges are up for renewal in early next year.
These are Vadodara Stock Exchange (January 3, 2015), Jaipur Stock Exchange (January 8, 2015) and United Stock Exchange of India (March 21, 2015).
As per Sebi norms, stock exchanges which desire of being recognised would have to apply in the prescribed manner to the central government. The licences once granted are renewed periodically by the market regulator.
The country’s leading bourses NSE and BSE that account for more than 99 per cent of volumes have been granted permanent licences.
Others with permanent licenses include Ahmedabad Stock Exchange, Bangalore Stock Exchange, Calcutta Stock Exchange, Delhi Stock Exchange, Madhya Pradesh Stock Exchange and Madras Stock Exchange.
In May 2012, Sebi came out with new regulations that allowed surrender of recognition and exit from the capital markets for those exchanges that are either non-operational or have negligible volumes.
Stock exchanges with annual trading turnover less than Rs 1,000 crore can apply to Sebi for voluntary surrender of recognition and exit, at any time before the expiry of two years.
Since then, the market watchdog has allowed four stock exchanges to exit from the capital market.
The Hyderabad Securities and Enterprises (erstwhile Hyderabad Stock Exchange), Coimbatore Stock Exchange and Saurashtra Kutch Stock Exchange had been granted exit by Sebi on January 25, March 3, April 4 and April 5, last year, respectively. Besides, Mangalore Stock Exchange was granted exit by Sebi on March 3, 2014. (PTI)
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