Hyderabad Stock Exchange

The Hyderabad Stock Exchange (HSE) was a stock exchange established in 1941 located in Hyderabad, India. The exchange was disbanded in 2007.

History

In November 1941, some leading bankers and brokers formed the share and stock Brokers Association. In 1942, Mr. Gulab Mohammed, the Finance Minister, formed a committee for the purpose of constituting rules and regulations of the Stock Exchange. Sri Purushothamdas Thakurdas, president and founding member of the Hyderabad Stock Exchange performed the opening ceremony of the exchange on November 14, 1943 under Hyderabad Companies Act. Mr. Kamal Yar Jung Bahadur was the first president of the exchange. The HSE started functioning under Hyderabad Securities Contract Act of No. 21 of 1352 under H.E.H. Nizam’s government as a company limited by guarantee. It was the 6th Stock Exchange recognized under Securities Contract Act, after the Premier Stock Exchanges, Ahmedabad, Bombay, Calcutta, Madras, and Bangalore Stock Exchange. All deliveries were completed every Monday or the next working day.

The HSE was first recognized by the Government of India on 29 September, 1958 as Securities Regulation Act was made applicable to twin cities of Hyderabad and Secunderabad from that date. In view of substantial growth in trading activities, and for the yeoman services rendered by the exchange, the exchange was bestowed with permanent recognition with effect from 29 September, 1983.

Operations

The Hyderabad Stock Exchange Ltd. started its operations in a small way in a rented building in the Koti, Hyderabad area. It moved to Aiyangar Plaza, Bank Street in 1987. In September 1989, the then Vice-President of India, Shankar Dayal Sharma inaugurated the Stock exchange's own building at Himayathnagar, Hyderabad. Later, in order to bring all the trading members under one roof, the exchange acquired still larger premises situated at 6-3-654/A ; Somajiguda, Hyderabad - 82, with a six storied building and a constructed area of about convert|486842|sqft|m2 (including cellar of convert|70857|sqft|m2).

The number of members of the Exchange was 55 in 1943, 117 in 1993 and increased to 300 with 869 listed companies having paid up capital of Rs.19128.95 crores as of March 31, 2000. The business turnover also substantially increased to Rs. 1236.51 crores in 1999-2000. The Exchange had a very smooth settlement system.

Derecognition of Stock Exchange

Securities and Exchange Board of India (SEBI) had notified The Hyderabad Stock Exchange Ltd. (Corporatisation and Demutualisation) Scheme, 2005 on August 29, 2005. The Hyderabad Stock Exchange Ltd. has failed to dilute 51% of its equity share capital to the public other than shareholders having trading rights on or before August 28, 2007. Consequently, in terms of section 5(2) of the Securities Contracts Regulation Act, 1956 (SCRA), the recognition granted to HSE was withdrawn with effect from August 29, 2007. After derecognization by SEBI, the company name has been changed to "Hyderabad Securities and Enterprises Ltd"

ee also

*List of South Asian stock exchanges

External links

* [http://www.hseindia.org Hyderabad Stock Exchange website]