September 03, 2007
PR No. 252/2007

Withdrawal of Permanent Recognition granted to The Hyderabad Stock Exchange Ltd.

The Hyderabad Stock Exchange Ltd. (HSE) has failed to dilute 51% of its equity share capital to public other than shareholders having trading rights on or before August 28, 2007. Consequently, in terms of section 5(2) of the Securities Contracts (Regulation) Act, 1956 (SCRA), the recognition granted to HSE stands withdrawn with effect from August 29, 2007.

SEBI had notified The Hyderabad Stock Exchange Ltd. (Corporatisation and Demutualisation) Scheme, 2005 on August 29, 2005. As per SCRA, every recognized stock exchange whose scheme for corporatisation and demutualisation has been approved by SEBI shall ensure that at least fifty-one per cent of its equity share capital is held by the public other than shareholders having trading rights, within twenty four months from the date of publication of the scheme.
 

Mumbai

September 03, 2007