Thursday, 11 May 2017


The Ahmedabad Stock Exchange, constituted as a Public Charitable Trust in 1894, is the second oldest exchange of India. It is recognized by Securities Contract (Regulations) Act, 1956 as permanent stock exchange. ASE was formed due to merger of Gujarat Share & Stock Exchange, Indian Share and General Exchange Association and Bombay Share and Stock Exchange, Share and Stock Brokers Association merged with the Ahmedabad Share and Stock Brokers Association.

With SEBI (I.E Securities and Exchange Board of India) circular No. CIR/ MRD/ DSA/ 14/ 2012 dated 30th May, 2012 all the regional stock exchanges was closed down. All the Regional Stock Exchanges were provided an exit option to the de-recognised stock exchanges and recognised stock exchanges seeking voluntary surrender of recognition ("exiting RSEs") as per the SEBI order. Companies listed exclusively on exiting or de-recognised RSEs will be required to seek listing on atleast any other RSE that is not seeking de-recognition and exit in terms of the aforesaid SEBI Circular. As per the aforesaid SEBI Circular, companies failing to list on any other RSE, such companies will be treated as an unlisted company and shall be moved to Dissemination Board (DB) by such exiting or de-recognised RSE.

SEBI has directed all exchanges that do not possess a trading platform with an annual turnover of at least ₹1,000 crore and a net worth of ₹100 crore, and that do not have a tie-up with a clearing corporation, to exit. Since ASE i.e Ahmedabad Stock Exchange was not able to meet the SEBI standard for operating as exchange, it got shut down by SEBI in Year 2014.

Ahmedabad Stock exchange had many valuable and noteworthy companies with strong financial background and management control, such as, Amol Dicalite, B & A Plantation, IFCI Limited, LUX Industries, Modern Insulator, Modern Terry Towel, Modern Thread (India), Oswal Spinning and Weaving Mills, Partap Industries, Resin & Plastics, Sealord Containers, etc

Many of these ASE listed companies got listed on national wide stock exchanges i.e BSE(Bombay Stock Exchange), NSE(National Stock Exchange), Metropolitan Stock Exchange or Kolkata Stock Exchange. Many companies have also come out with buy back offer for their shareholders to provide them liquidity option.

ADVANTAGES TO SHAREHOLDERS: De-recognized/ regional/ dash board companies are more beneficial source of investment since these companies have to be compulsorily come out with either buy back ie exit offer for investors or list themselves on recognized national level exchanges. Thus Investors have a good opportunities to be the part of valuable stock on such exchanges and get a short term exit route. SEBI has been receiving representations seeking clarifications on raising of further capital and the process of exit of ELCs from the DB. Therefore, in the interest of the investors of such ELCs, it is decided to extend the time to submit the plan of action till June 30, 2017.

(Click to view the list of ASE listed companies)- List of Ahmedabad Listed Companies

No comments:

Post a Comment