The government has formally withdrawn the recognition of Delhi Stock Exchange, more than a year after capital market regulator Sebi derecognized the bourse citing “serious irregularities” in its functioning.
- DSE was among the few bourses that were given permanent recognition by the Securities and Exchange Board of India (Sebi), as per information available on the regulator’s website.
- In a notification dated March 16, the Finance Ministry said the recognition granted to the Delhi Stock Exchange Ltd “stands withdrawn”.
- Under certain provisions of the Securities Contracts (Regulation) Act, 1956, the recognition to a recognized stock exchange can be withdrawn if it “has not been corporatized and demutualized within the specified time”.
- In August 2005, Sebi had notified DSE Ltd (Corporatisation and Demutualisation) Scheme, 2005.
- Under demutualization, management and trading at a stock exchange are separated while corporatization refers to running a bourse like a company.
- After finding “serious irregularities” in its functioning, Sebi had earlier decided to withdraw recognition granted to the exchange.
Did You Know?
- Delhi Stock Exchange (DSE) is located in New Delhi, India.
- It was incorporated on 25 June 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.
