The Securities and Exchange Board of India (Sebi) has allowed Hyderabad Securities and Enterprises Ltd (HSEL) — erstwhile Hyderabad Stock Exchange — to exit as a stock exchange. This is the first exit of a stock exchange as per Sebi guidelines.
“HSEL or its subsidiaries (if any) may continue to function as any other corporate entity or any other normal broking entity. Further, HSEL shall not use the expression ‘stock exchange’ or any variant in its name or in its subsidiary’s name so as to avoid any representation of present or past affiliation with the stock exchange,” Sebi said.
“I am of the view that it is a fit case for allowing exit HSEL,” Sebi whole-time member Rajeev Kumar Agarwal said in an order dated January 25.
There are currently 25 stock exchanges across the country, most of which
are non-operational and only five have trading on their platform which includes NSE, BSE, MCX, USE and CSE. Regional stock exchanges started losing business after BSE and NSE launched nationwide trading terminals.