The Hindu Business Line : BSE corporatisation plan gets SEBI nod

FOLLOWING the corporatisation and demutualisation of the BSE, the exchange will have to ensure that at least 51 per cent of its equity shares are continuously held by public other than shareholders having trading rights.

This is as per the final plan for corporatisation that has been submitted by the BSE and approved by SEBI.

Bombay Stock Exchange Ltd shall be a for-profit company that is limited by shares under Section 12 of the Companies Act. The ownership and management of the exchange would also be segregated from the trading rights of the members.

Initially, the cardholders of the BSE would become shareholders of BSE Ltd. They may also become trading members of the exchange. Deposit- based members would also become trading members of BSE Ltd. After corporatisation and demutualisation, there will be only one class of trading members with similar rights and privileges. Uniform standards would be followed in terms of capital adequacy, deposits and fees, while admitting any person as a trading member or accepting his surrender, according to the final plan approved by the capital market regulator.

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