Securities Exchange Board of India (SEBI) on 19 November 2014 announced to de-recognise Delhi Stock Exchange (DSE) on the allegations of serious irregularities in its functioning.
The order of de-recognition will be applicable with immediate effects.
SEBI observed that the activities of DSE were carried out in a manner contrary to the interest of the investors. The regulator will take all necessary steps consequential to de-recognition.
Further, SEBI acclaimed that for completing the demutualisation process the erstwhile board of DSE had overlooked the due transfer of shares in the demat accounts and receipt of the funds by the appointed date.
Also, DSE acted in an irregular manner in releasing the funds to the merchant banker, without receipt of the application money, allotment of shares to media companies and in turn awarding them media contract etc, without any corresponding utilisation of media space.
Among others, SEBI rules pertaining to demutualisation requires every stock exchange to sell brokers' 51 per cent equity to separate their trading and ownership rights.
Present governing board of DSE admitted that a false certificate of completion of demutualisation process has been submitted by the erstwhile management of the exchange.
Delhi Stock Exchange
The Delhi Stock Exchange (DSE) is located in New Delhi, India. It was incorporated in 1947. The exchange is an amalgamation of Delhi Stock and Share Brokers' Association Limited and the Delhi Stocks and Shares Exchange Limited. It is India's fifth exchange. The exchange is one of the premier stock exchanges in India. The Delhi Stock Exchange is well connected to 50 cities with terminals in North India.
When: 19 November 2014
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