Order in the matter Of The Hyderabad Stock Exchange Limited (Corporatisation And Demutualisation) Scheme, 2005.

Aug 29, 2005
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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

NOTIFICATION

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 HYDERABAD STOCK EXCHANGE LIMITED (CORPORATISATION AND DEMUTUALISATION) SCHEME, 2005.

 

S. O. 1206 (E). 1.0 The Hyderabad Stock Exchange Limited (hereinafter referred to as the ‘HSEL’), registered under the Companies Act, 1956 as a company limited by guarantee, is a recognised stock exchange having its principal place of business at 6-3-654, Somajiguda, Hyderabad – 82. It is required to be corporatised and demutualised in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as the ‘SCRA’).

 

 2.0  HSEL, vide its letter dated February 2, 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 HSEL to submit a revised scheme taking into account the provisions of the BSE (Corporatisation and Demutualisation) Scheme, 2005, which may be applicable and relevant to HSEL. Accordingly, HSEL, vide its letter dated June 13, 2005 submitted a revised scheme after taking into account the provisions of the BSE scheme. SEBI made enquiries from HSEL through a meeting with its Executive Director on June 28, 2005. Based on the discussions during the said meeting, HSEL desired to resubmit the scheme. Vide letter dated June 30, 2005, it submitted a further revised scheme (hereinafter referred to as ‘the Scheme’) for its corporatisation and demutualisation to SEBI for approval, in accordance with the provisions of the SCRA.

 

3.0  The Scheme, inter alia, provides for the re-registration of HSEL as a company limited by shares, 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 corporatisation and demutualisation of HSEL.

 

4.0 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.

 

5.0 HSEL 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.

 

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

 

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

 

F. No. SEBI/MRD/48114 /2005

 

 

 

M. DAMODARAN

CHAIRMAN

SECURITIES AND EXCHANGE BOARD OF INDIA

 

Encl: Annexure - A