Prior approval of the Exchange for acquisition of shares of the exchange.

Trading Members of the Exchange are informed that Securities and Exchange Board of India (SEBI) has issued a Notification in the Gazette of India notifying "Appointed Date" for Madhya Pradesh Stock Exchange Limited as 28th August, 2007. This notification signifies achieving of Demutualisation i.e. at least 51% of equity share capital of the Exchange is held by Public. 

Attention of the Trading Members is drawn to the Clause 10.2 of the MPSE (Corporatisation and Demutualisation) Scheme, 2005 (the Scheme), which reads as under:

On and from the Appointed Date, Madhya Pradesh Stock Exchange Limited shall ensure that public other than shareholders having trading rights continuously hold at least 51% of equity shares.

SEBI has also notified Securities Contracts (Regulation) (Manner of increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006 (SEBI Regulations) regulating amongst other things the transactions in the securities of the Exchange. Besides the Scheme, the said Regulations also require the Stock Exchanges to monitor and ensure that at least fifty-one per cent of its equity share capital is continuously held by the public.
Under the said Regulations, no person either individually or together with persons acting in concert with him, acquire and/or hold more than one per cent of the paid up equity capital of the Exchange unless he is a fit and proper person as defined under the Regulations and has taken prior approval of the SEBI.  Further, no person directly or indirectly acquire or hold more than five per cent in the paid up equity capital of the Exchange. 

In order to adhere to the conditions stipulated under the Scheme and the SEBI Regulations, it is hereby informed that any Trading Member or an "Associate" of such Trading Member (as defined under the SEBI Regulations) desirous of buying/acquiring securities of Madhya Pradesh Stock Exchange Limited  is advised to obtain prior approval of the Exchange by addressing a letter to the Company Secretary,

Madhya Pradesh Stock Exchange Limited, 201 Palika Plaza, Phase- II M.T.H Compound, Indore mentioning therein the existing number of shares held by the Trading Member and its Associates and the number of shares proposed to be acquired/bought by the Trading Members and its Associates.