Chennai Stock Exchange with 76-year History to be closed – SEBI decision
Posted on: 02/May/2014 9:54:56 AM
Chennai Stock exchange has been functioning with a 76 year history as the leading exchange among the South Indian stock exchanges. However, SEBI has issued a warning that the Chennai Stock exchange might be closed with effect from 30th May.
Chennai Stock exchange had failed to carry out the various regulations given by SEBI. This is supposed to be the reason for the closure. Unless there is some miraculous and drastic changes happen in the management, SEBI’s decision for closure may not be withdrawn.
In its letter dated May, 2014 to Chennai Stock Exchange, SEBI has informed that Chennai Stock Exchange should show Rs. 1000 Crores worth of trading and a an equity of Rs. Rs. 100 Crores before end May, 2014. Failing this would entail closure of Chennai Stock exchange. As per the latest statistics, Chennai Stock Exchange has not fulfilled both these conditions. With only 0 days remaining, the analysts observe that closure of Chennai Stock Exchange is inevitable.
An important meeting was conducted yesterday. It was decided to call for a meeting of all stock holders in a special meeting when the topics of the failure to meet SEBI’s regulations and conditions will be discussed in detail. Managing Director, Mr. Ramnath informed that some more time will be required to explain the activities on this issue. The attempts to operate jointly with other regional stock exchanges in south did not fructify.
