Finance Ministry in a notification dated March 16 said the recognition granted to the Delhi Stock Exchange Ltd ‘stands withdrawn’.
Information available on the regulator’s website said that DSE was among the few bourses that were given permanent recognition by the SEBI.
The Act of Securities Contracts (Regulation) Act, 1956 under certain provisions states that recognition to a recognised stock exchange can be withdrawn if it has not been corporatised and demutualised within the specified time.
SEBI, in August 2005, had notified DSE that it was to be demutualised on or before August 28, 2007.
SEBI had earlier decided to withdraw recognition granted to the exchange after finding ‘serious irregularities’ in its functioning.
SEBI Whole Time Member Prashant Saran had said in an order dated November 19, 2014:
“I note that serious irregularities have been found in the functioning of Delhi Stock Exchange at the time when DSE was taking steps for demutualisation.”
The order also stated that for completing the demutualisation process the erstwhile board of DSE had overlooked the due transfer of shares in demat accounts and receipt of funds by the appointed date.