Chennai Stock Exchange to be closed!
Posted on: 29/May/2014 2:27:34 PM
It has become certain that the Chennai Stock Exchange will stop functioning.
SEBI (Securities & Exchanges Board of India), which guides the Indian stock trade, imposed certain conditions on all stock exchanges on May, 2012. As per this, regional stock exchanges should reach a target value of Rs. 100 Crores within 2 years. SEBI also instructed that failing this condition will not permit functioning of the stock exchange.
Chennai Stock Exchange is not in a position to fulfil this condition before 30th May. This has led to a situation where the exchange might be ordered to close operations.
Chennai Stock Exchange, with a history of more than 70 years, conducted a General Body Meeting on this issue. 85% seems to have agreed to the proposal of closing the exchange.
With this development, it is certain that Chennai Stock Exchange will stop functioning from 30th May.
It is worth noting that the stock exchanges at Coimbatore, Bangalore, Mangalore, Hyderabad, and Cochin have already been closed.
