SEBI passes restraint order on Coimbatore exchange
Mumbai: The Securities and Exchange Board of India, through an interim order on Monday, has refrained the Coimbatore Stock Exchange (CSX) from transferring or selling its any of its movable or immovable property. The market regulator has also appointed a three-member committee to conduct the day-to-day affairs of the exchange till further orders.

The SEBI has come out with its interim order in the wake of an extra-ordinary general meeting of CSX on February 15, which passed a resolution for voluntary surrender of SEBI recognition as a stock exchange.

Through a letter dated March 17, the regulator had advised the CSX that the resolution passed in the EGM "cannot be acted upon as the same was ultra vires of the SCRA (Securities Contracts (Regulation) Act, 1956)."

However, in spite of the letter, CSX members "passed a resolution adopting the new set of Memorandum and Articles of Association, according to which no person other than a member of the exchange can hold the position of a Director. Consequently, the Public Representative Directors and the SEBI Nominee Director do not find a place in the said Articles of Association," the SEBI's interim order said.
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