SEBI issues guidelines in respect of exit option to Regional Stock Exchanges

On December 29, 2008, SEBI has issued guidelines to provide an exit option to such Regional Stock Exchanges (RSEs) whose recognition is withdrawn and/or renewal of recognition is refused by SEBI and RSEs who may want to surrender their recognition.
The highlights of this circular are as follows: -
• In every case, SEBI will pass an order effecting the exit.
• RSEs (or their successor entities) may be permitted to retain movable and immovable assets and to deal with such assets as they deem fit subject to compliance with the conditions prescribed by the SEBI.
Companies which are listed in such de-recognised RSEs will have the following options:-
• If the company is listed in some other stock exchange(s), it may continue to remain listed in the other stock exchange(s).
• In case of companies exclusively listed on those de-recognised stock exchanges, it shall be mandatory for such companies to either seek listing at other stock exchanges or provide for exit option to the shareholders as per SEBI Delisting Guidelines / Regulations after taking shareholders’ approval for the same. Failing to do so will result in the delisting of the companies through operation of law.