Order in the matter of The Delhi Stock Exchange Association Limited (Corporatisation And Demutualisation) Scheme, 2005

Aug 29, 2005
|
Orders : Orders of Corporatisation / Demutualisation Scheme

GAZETTE OF INDIA

EXTRA-ORDINARY

PART II - SECTION 3- SUB-SECTION (ii)

PUBLISHED BY AUTHORITY

SECURITIES AND EXCHANGE BOARD OF INDIA

Mumbai, the 29th August, 2005

SECURITIES AND EXCHANGE BOARD OF INDIA, MUMBAI

 

ORDER UNDER SECTION 4B (6) READ WITH SECTION 4B (7) OF THE SECURITIES CONTRACTS (REGULATION) ACT, 1956 IN THE MATTER OF THE DELHI STOCK EXCHANGE ASSOCIATION LIMITED (DEMUTUALISATION) SCHEME, 2005.

 

S. O.  1198 (E). 1.0 The Delhi Stock Exchange Association Limited (hereinafter referred to as the ‘DSE’), incorporated on June 25, 1947 as a Corporate body with limited liability for the purpose of promoting, regulating or controlling the business of buying, selling or dealing in securities, is a recognised stock exchange, having its Registered Office at DSE HOUSE, 3/1, ASAF ALI ROAD, NEW DELHI – 110 002. It is required to be demutualised in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as the ‘SCRA’).

 

2.0       The DSE, vide its letter dated January 31, 2005, submitted a Scheme for its corporatisation and demutualisation for approval to the Securities and Exchange Board of India (hereinafter referred to as the ‘SEBI’) in terms of sub-section (1) of section 4B of the SCRA. SEBI, vide its letter dated May 25, 2005, advised DSE to submit a revised Scheme, after taking into account those provisions of the BSE (Corporatisation and Demutualisation) Scheme, 2005 that may be relevant to DSE.

 

3.0       Accordingly, DSE, vide its letter dated June 30, 2005, submitted a revised Scheme for its demutualisation (hereinafter referred to as the ‘Scheme’). SEBI made enquiries and obtained further information from DSE through discussions with it. The Scheme was discussed in depth in a meeting with the DSE on July 8, 2005.

 

4.0  The Scheme, inter alia, provides for the segregation of ownership and management from the trading rights of the members, restriction on voting rights of shareholders who are also trading members, composition of the Governing Board, etc. in accordance with the provisions of Section 4B (6) of the SCRA, utilisation of assets and reserves and other matters required for the purpose of and in connection with the demutualisation of DSE.

 

5.0    SEBI, having considered the Scheme and on being satisfied that it would be in the interest of the trade and also in the public interest, hereby approves the Scheme with minor modifications. The approved Scheme is enclosed as Annexure - A.

 

6.0    DSE shall ensure compliance with the Scheme within the time as specified in the Scheme and shall not do anything contrary to the provisions of Scheme and submit compliance report to SEBI in the manner as may be specified by SEBI.

           

7.0    SEBI reserves the right to amend, alter or modify the Scheme in the interest of the trade and the public interest and in furtherance of the objectives of the demutualisation of the stock exchange.

 

8.0    The Scheme shall come into effect on the day of its publication in the Official Gazette.

 

F. No. SEBI/MRD/48107  /2005   

                                                                                                   

                                                                                                         

 

M. DAMODARAN

                                                                                                                     CHAIRMAN

                                            SECURITIES AND EXCHANGE BOARD OF INDIA 

 

 

Encl: Annexure - A