ASE to shut shop soon

A meeting of the board of directors that was held on May 27, 2014, unanimously decided to exit voluntarily. Active trading on ASE has already been discontinued since 2004.

In the wake of a notice issued by Securities and Exchange Board of India (SEBI) telling regional exchanges to shut shop if they failed to increase turnover to Rs 1,000 crore by May 31, 2014. ASE Board has decided to quit because its turnover could not reach even up to Rs 50 crore within the requisite time.

Earlier, the SEBI notification was challenged in the Gujarat High Court by ASE, along with Vadodara Stock Exchange. However, they lost since the court upheld the SEBI action.

ASEL has around 900 shareholders, who will decide in their next EGM of July 5 about the future course. ASE as a regional exchange may not have been in business for 10 years, but it owns properties worth hundreds of crores, value of which has appreciated over the years.

An incomplete building, its Ashram Road plot near Gandhigram railway station has never been completed for some or the other reason. However, this has been a blessing in disguise in terms of value growth.

When asked about the future course, ASE public director P K Laheri said it would be for the shareholders at the EGM to decide on these matters. ASEL has already notified 2,200-odd companies listed on it about the development in the wake of the SEBI circular of May 30, 2014, and the decision of the board of directors.

Once counted among premier stock exchanges in the country, ASE had its golden time in 1990s, when share broker Harshad Mehta was ruling the roost in capital market.

In those times, its membership card price had reached Rs 10 lakh, which slid down with time. Most of its members went inactive since discontinuance of trading activities 10 years ago. It had started functioning from under a tree in 1904 in Manek Chowk area, where it had acquired a building nearby. The beautiful structure has become inaccessible due to traffic congestion.

One thing that will remain etched in public memory is its famous refreshment joints that grew around the old building in Manek Chowk, where having spicy refreshments called “share bajarnu chavanu” which is till date a hit among locals.