Understanding Stock Exchanges and SEBI

Stock exchanges are crucial marketplaces where buyers and sellers trade shares of publicly listed companies. In India, the regulatory body overseeing the securities market, including stock exchanges and brokers, is the Securities and Exchange Board of India (SEBI).

SEBI's Role in Stock Exchange Operations

SEBI plays a vital role in regulating the Indian capital markets. Its functions include protecting the interests of investors, promoting the development of the securities market, and regulating its operations. This regulation extends to allowing stock exchanges to operate and, in certain circumstances, permitting them to exit the business if they meet specific criteria or fail to comply with regulations.

Stock Exchange Exit Permission from SEBI

In recent times, some regional stock exchanges in India have faced challenges related to low trading volumes, stringent regulatory requirements, and the dominance of major exchanges like the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Due to these factors, some exchanges have sought permission from SEBI to cease operations and exit the stock exchange business.

Among the options provided, the stock exchange that recently received permission from SEBI to exit its business is the Delhi Stock Exchange.

Let's look at the options:

• Bombay Stock Exchange: This is one of the primary stock exchanges in India and is actively operational.
• Calcutta Stock Exchange: This is a regional stock exchange that has faced operational challenges but was not the one specified as recently receiving permission to exit.
• Delhi Stock Exchange: This stock exchange received SEBI's approval to exit the business.
• National Stock Exchange: This is one of the largest and most active stock exchanges in India and is fully operational.

Therefore, based on recent regulatory decisions by SEBI concerning the exit of regional stock exchanges, the Delhi Stock Exchange was the one that received the necessary permission to cease its operations as a stock exchange.