Kochi, Sept. 5
THE Securities and Exchange Board of India has approved the demutualisation scheme of the Cochin Stock Exchange Ltd.
The scheme is aimed at ensuring professional transparency in the working of the stock exchanges.
The demutualisation scheme is prepared in accordance with the amendments made in the Securities Contract (Regulations) Act, a press release from the exchange said. It envisages separation of ownership and trading rights at the hands of the members. At present, the members of the exchange have dual rights one as a shareholder of the exchange and the other in exercising trading rights.
On the implementation of the demutualisation scheme, a person holding shares need not be a trading member and similarly a trading member need not be a shareholder of the exchange. The scheme also provides for reduction of shareholding of members to the level of 49 per cent and the rest to be held by non-trading members.
According to the scheme, the Board of Directors of the exchange shall also be reconstituted with 75 per cent of the directors representing Government and SEBI nominees as well as public representatives. The exchange has already initiated steps for implementing the demutualisation scheme.