Ahmedabad Stock Exchange: Will Amdavad lose its living heritage to apathy?

“Turning and turning in the widening gyre, The falcon cannot hear the falconer…”

A cynosure in the city’s traditional hub of trading activities, the Ahmedabad Stock Exchange, a living heritage and second oldest stock exchange of the country, is limping slowly, but surely to its end. Although the death knell for the 120-year-old exchange was already sounded last year, that it has to call it a day on March 31, 2014, has surely left the concerned circles numb.

The fact that it will eventually end up becoming just a company with real estate properties and that too, close on the heels of the heritage week fanfare is sending shivers up their spines. Be that as it may, if the exchange goes into liquidation, its 93-year-old heritage building at Manek Chowk, may just remain merely as part of our good memories.

As per the guideline issued by the regulator, Securities & Exchange Board of India (Sebi) one-and-a-half years back, all the exchanges got a deadline till March 2014 either to perform or perish. The steps taken towards the option of ‘perform’ never got the approval of Sebi and so the exchange is just waiting to ‘perish’.

Established under a banyan tree, ASE was formed on May 31, 1894. Active trading discontinued since 2004, but the subsidiary of exchange, ASE Capital Market, is working with the terminals of Bombay Stock Exchange and National Stock Exchange. At present, over 500 companies, particularly Gujarat headquartered companies are still listed and have been paying listing fees. All these companies will be de-listed from April 1, 2014.

The possibilities of the exchange going into liquidation are very high as the shareholders are interested in getting their money back.

But the board of stock exchange consisting two public independent directors and a few shareholders believe that brokers’ feeling and attachment towards the exchange should not be killed.

Hence, the board has urged Sebi to allow shareholders to hold either AGM or EGM in which they can decide on what to do with the entity with out exchange. “Revival of exchange is not possible any more. But the shareholders have got five options,” said one of the PIDs of the board, PK Laheri.

To keep the name ‘Ahmedabad Stock Exchange’ alive, Laheri suggested a few options. The three large properties — one each at Manekchowk, Ellisbridge and Panjrapole — and a few minor ones can be used for some other purposes, he said. “Or incarnation of the company is possible like its subsidiary, in which it is working as a broker for BSE and NSE. Or it can start some educational programs in financial sector. As per the fourth option, exchange can become a charitable trust and the last option suggests that exchange can use the current staff strength of up to 100 people for some other business model,” said Laheri and added that these are possibilities only if Sebi approves.

A century ago, the exchange, which started its chapters from under a banyan tree, found itself a permanent address in 1921. The Manek Chowk building which houses the ASE was purchased in 1921, however, the ornate building is now in a dilapidated condition.

For almost 70 years, the bourse was functioning in its Manek Chowk building. But in early 90s, exchange realized that it requires expanding and needing bigger space. And so they bought 6,000 square yard of plot, near railway crossing of Gujarat College in Ellisbridge area of city on May 31, 1991. But somehow that did not shape well and so the exchange never shifted base to the tallest building of the city and the building had remained under construction.

Till then, the exchange operated from its Manekchowk building where the space was its  biggest constraint. The present office of Ahmedabad Stock Exchange near Panjrapole was bought and started operations in 1996.