The Hindu Business Line : SEBI notifies schemes for corporatisation of 9 more SEs

THE Securities and Exchange Board of India (SEBI) has passed the notification for the corporatisation and demutualisation of additional nine stock exchanges. These are OTC Exchange of India, Vadodara, Jaipur, Magadh, Ludhiana, Saurashtra Kutch, Bhubaneswar, Inter-connected Stock Exchange of India Ltd and The Stock Exchange - Ahmedabad.

The SEBI-approved final scheme provides guidelines to exchanges for the segregation of ownership and management from the trading rights of the members. These also include restriction on voting rights of shareholders who are also trading members and composition of the Governing Board.

After corporatisation and demutualisation, there will be only one class of trading members with similar rights and privileges, and uniform standards will be followed in terms of capital adequacy, deposits, fees, etc. while admitting any person as a trading member or for accepting his surrender.

Also, Governing Boards of the exchanges will be so constituted that representatives of trading members do not exceed one-fourth of the total strength of the board, the SEBI release said. The exchanges have been asked to ensure that at least 51 per cent of their equity shares are held by public other than shareholders having trading rights.

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