Sebi permits OTC Exchange of India to exit from stock markets

MUMBAI: Sebi has allowed OTC Exchange of India (OTCEI) to exit as a bourse from the nation's securities markets.

According to the Securities and Exchange Board of India (Sebi), OTCEI had complied with the regulator's conditions for exit and is therefore "a fit case to allow exit" from capital markets.

Sebi said OTCEI had made payment of necessary dues to the regulator, including 10 per cent of the listing fee and the annual regulatory fee.

"From the valuation report and undertaking of OTCEI, it is observed that all the known liabilities have been brought out and that there is no other future liability that is known as on date," Sebi said in the order dated March 31.

Allowing the exit to OTCEI, Sebi has asked the bourse to change its name and not to use the expression "Stock Exchange" or any variant of this expression in its name and to avoid any representation of present or past affiliation with the stock exchange, in all media, among others.

The central government had granted recognition to OTCEI, as a stock exchange on August 23, 1989 initially for a period of 5 years, which was subsequently renewed from time to time.

OTCEI in January last had made a request to Sebi to exit as stock exchange.

As per Sebi norms, a stock exchange, whose annual trading turnover on its platform is less than Rs 1,000 crore, can apply for voluntary surrender of recognition and exit, while a bourse which fails to achieve a turnover of Rs 1,000 crore, would be subject to compulsory exit process.