The Securities and Exchange Board (Sebi) has made it mandatory for new stock exchanges or platforms for small and medium enterprises (SME) in existing stock exchanges to have networth of at least Rs 100 crore. The proposed SME exchange can be set up after obtaining due recognition under the Securities Contracts (Regulation) Act, 1956. Sebi said in a statement that the proposed stock exchange should be set up as a corporate entity since inception. ?It shall convert itself into a demutualised entity and comply with the Securities Contracts (Regulations),? Sebi said.
The exchange will have nation-wide trading terminals and an online-based trading system which will also contain a business continuity plan including a disaster recovery site. ?The exchange will have an online survelliance capability which monitors positions, prices and volumes in real time so as to check market manipulations?, the regulator said. Sebi said that the exchange will have adequate arbitration and investor grievances redressal mechanism operative from all the four regions of the country. ?The exchange would have adequate inspection capability. The risk management system and surveillance system shall be the same as that of the cash market,? Sebi said. Sebi said that the minimum trading lot would be Rs 1 lakh. The trading system may either be order-driven or quote-driven. ?The settlement may be on rolling, trade or call auction basis,? the regulator added. In another development, Sebi has passed eight consent orders related to the IPO irregularities. The settlement amount ranges from Rs 70,000 to Rs 10 lakh, Sebi said.
