The Centre has decided to go in for an “in-depth” examination of the recommendations of the much-talked about Bimal Jalan committee report on ownership and governance of market infrastructure institutions (MIIs), including stock exchanges.

For this purpose, the Corporate Affairs Ministry has set up a 15-member committee with Ms Renuka Kumar, Joint Secretary in the Ministry of Corporate Affairs, as its Chairperson.

This committee has been tasked to discuss Bimal Jalan committee report with specific deliberations on important issues such as board composition of stock exchanges, listing of bourses and the appropriate competition policy for stock exchanges, official sources said.

The important issue of balance between regulatory and business functions of stock exchanges and clearing corporations is also proposed to be discussed by the committee.

The first meeting of the committee is slated for May 23.

The committee has been asked to address the issues concerning the administration of Companies Act-1956 and the role of stock exchanges therein.

Besides a nominee each from the three apex industry associations — FICCI, CII and Assocham — the members of the committee include a representative from the NSE, BSE, NSDL and CDSL. MCX Stock Exchange and United Stock Exchange have been invited to the committee and both can nominate a member. The three professional institutes of ICAI, ICWAI and ICSI also find a place in the new panel.

The Bimal Jalan committee was appointed by the SEBI in February 2010 to look into governance, ownership, listing of bourses and other issues. This committee had in November 2010 submitted its report to SEBI and recommended that it was not in favour of listing of stock exchanges. It had also mooted placing a cap on stock exchanges profits besides reining in executive remunerations of stock exchanges.

Related Topics
comment COMMENT NOW