The Allahabad High Court on Monday issued notices to the Securities and Exchange Board of India (Sebi) and Uttar Pradesh Stock Exchange (UPSE) on a petition filed by the Uttar Pradesh Stock Brokers Association (UPSBA). The petition seeks quashing of Sebi proposals on de-recognition of stock exchanges,whose annual trading turn-over is below Rs 1,000 crore.
The court has sought the counter-affidavit of the respondents by October 10 and fixed October 17 as the next date of hearing.
On May 30,Sebi had sent a circular to all the heads of the stock exchanges in the country detailing the conditions for de-recognition of those exchanges,which had annual trading turnover of less than Rs 1,000 crore,to opt for voluntary surrender of recognition within a period of two years.
The circular had further said that,in case of failure,de-recognition would be compulsory after two years.
Sebi had also directed the UPSE Board to call an emergency general body meeting,which was scheduled on September 7 at Kanpur,where the UPSE. But it was postponed to September 14.