GAZETTE OF INDIA
EXTRA-ORDINARY
PART II - SECTION 3- SUB-SECTION (ii)
PUBLISHED BY AUTHORITY
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 15th September, 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 SAURASHTRA KUTCH STOCK EXCHANGE LIMITED (CORPORATISATION AND DEMUTUALISATION) SCHEME, 2005.
S. O. 1318 (E). 1.0 The Saurashtra Kutch Stock Exchange Limited (hereinafter referred to as the ‘SKSE’), registered under the Companies Act, 1956 initially as a company limited by guarantee and re-registered as a company limited by shares vide certificate of incorporation dated March 16, 2005, is a recognised stock exchange having its principal place of business at Popatbhai Sorathia Bhavan, Sadar Bazar, Rajkot – 360001. 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 SKSE, vide its letter dated January 29, 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. Vide letter dated March 17, 2005, it submitted that it has been re-registered as a company limited by shares under section 32 of the Companies Act vide certificate of incorporation dated March 16, 2005 issued by Registrar of Companies, Gujarat, Dadra and Nagar Haveli. SEBI, vide its letter dated May 25, 2005, advised SKSE to submit a revised scheme taking into account the provisions of the BSE (Corporatisation and Demutualisation) Scheme, 2005, which may be relevant and applicable to SKSE.
3.0 Thereafter, SKSE, vide its letter dated June 17, 2005 submitted a revised scheme. SEBI made enquiries and obtained information from SKSE through a meeting on June 24, 2005. Based on the discussions during the said meeting, SKSE desired to resubmit the scheme.
4.0 Accordingly, SKSE, vide its letter dated July 26, 2005 submitted a further revised scheme (hereinafter referred to as ‘the Scheme’) to SEBI for approval in accordance with the provisions of the SCRA.
5.0 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 corporatisation and demutualisation of SKSE.
6.0 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.
7.0 SKSE 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.
8.0 SEBI reserves rights 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.
9.0 The Scheme shall come into effect on the day of its publication in the Official Gazette.
F. No. SEBI/MRD/ 49405 /2005
M. DAMODARAN
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA
Encl: Annexure A