Sebi allows firms listed on RSEs to migrate to main bourses

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In exit norms specified by the Securities and Exchange Board of India (Sebi) for defunct regional stock exchanges (RSEs), the regulator has allowed companies on these platforms to be listed on other operating stock exchanges.

There are 16 RSEs in the country and almost all are defunct for many years now. It has become difficult for them to start operations as Sebi has prescribed a Rs 100 crore net worth crieria. There are more than 5,000 stocks listed on all these exchanges together.

  

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However, Sebi has said that exclusively listed companies on RSEs, which fail to obtain listing on any other stock exchange, will cease to be a listed company. They will be moved to dissemination board, which will be set-up by stock exchanges having nationwide trading terminals.

As per Sebi, under the dissemination mechanism, a willing buyer and seller will be given an opportunity to disseminate their offers using the services of brokers of stock exchanges hosting dissemination board.

The mechanism of dissemination board will given wide publicity for the benefit of the investors of exclusively listed companies. Every stock exchange hosting a dissemination board shall clearly bring out the guidelines in respect of the Dissemination Board on its website.

In case of de-recognition of a stock exchange, the exchange may provide trading opportunity to their trading members to trade on stock exchanges having nationwide terminals through their subsidiary company, which will function as normal broking entity. In case of de-recognition, subsidiary company will continue to function as broking entities.

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