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DSE proposes inserting winding up clause in AOA
New Delhi, Aug 24: In view of poor business run and virtually zero trading, the Delhi Stock Exchange has proposed to insert a clause for winding up in its articles of association if it fails to come up with new business model, which includes merging with other bourses or joining the Indonext exchange.
New Delhi, Aug 24: In view of poor business run and virtually zero trading, the Delhi Stock Exchange has proposed to insert a clause for winding up in its articles of association if it fails to come up with new business model, which includes merging with other bourses or joining the
Indonext exchange.
An enabling provision in this regard, which is drawn up
following Sebi's directive to bourses on demutualisation, and
would be taken up at an extra-ordinary general meeting, slated
to be held later this week.
This move follows Sebi's demutualisation scheme in the backdrop of Justice Kania committee report and in the wake of several regional bourses losing its steam to the country's largest national and Bombay Stock Exchanges.
Asked about the final proposal of demutualisation scheme, which mentioned winding up clause, DSE sources said final proposals have been submitted to Sebi in July itself and "the ball now lies in the regulator's court".
The scheme, prepared by a leading chartered accountancy firm, has envisaged options of joining trade with Indonext exchange, members operating as sub-brokers on NSE/BSE through subsidiary, participating in commodity futures market or merging with other bourses including BSE.
In the event of non-implementation of any business model and inability to turnaround the exchange, the scheme said the third option would be derecognition and winding up of the exchange.
Bureau Report
This move follows Sebi's demutualisation scheme in the backdrop of Justice Kania committee report and in the wake of several regional bourses losing its steam to the country's largest national and Bombay Stock Exchanges.
Asked about the final proposal of demutualisation scheme, which mentioned winding up clause, DSE sources said final proposals have been submitted to Sebi in July itself and "the ball now lies in the regulator's court".
The scheme, prepared by a leading chartered accountancy firm, has envisaged options of joining trade with Indonext exchange, members operating as sub-brokers on NSE/BSE through subsidiary, participating in commodity futures market or merging with other bourses including BSE.
In the event of non-implementation of any business model and inability to turnaround the exchange, the scheme said the third option would be derecognition and winding up of the exchange.
Bureau Report