SAT dismisses SKSE appeal against SEBI order

Mumbai, July 13 (UNI) The Securities and Appellate Tribunal (SAT) today dismissed the appeal filed by Saurashtra Kutch Stock Exchange (SKSE) against an order passed by Securities and Exchange Board of India (SEBI), withdrawing recognition of SKSE.

The SEBI had passed the order last Friday. SKSE thus finally ceases to a recognised stock exchange.

In a related development, brokers of SKSE Securities Ltd. who had also filed separate appeals before the SAT on Monday against the SEBI order, have withdrawn their appeals.

In a response to letter from SKSE Securities Ltd, SEBI had clarified on July 11 that since the SEBI order did not prohibit functioning of SKSE Securities Ltd in any manner, the sub-brokers of SKSE could continue to trade on BSE and NSE. The SEBI's clarification provided a great relief to the investors in the region connected through the brokers of SKSE.

SEBI in its order against SKSE had observed that the stock exchange time and again acted contrary to and in defiance of SEBI directives and guidelines issued from time to time.

Besides, the SKSE was virtually defunct for several years and did not serve any economic purpose, the SEBI order had said.

The order had also highlighted that the regulator has been receiving frequent complaints on the mal-administration and mismanagement by the council of the exchange from various important quarters like the ministry of finance and members of Parliament.

UNI