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Finmin favours 'middle path' on Jalan panel recommendations

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 2:09 AM IST

Finance Ministry today pitched for a "middle path" on Jalan Committee suggestions on a new set of rules regarding the ways stock exchanges should be owned and run, amidst the recommendations generating strong divergent views.

At an Assocham meet here, Secretary of Department of Economic Affairs R Gopalan said the Securities and Exchange Board of India (Sebi) is "seized" of the matter.

"This [Jalan committee] report for a number of reasons has generated opinions for and against in equally strong manner. I am sure, we need to find a middle path given the firm views on both side," he said.

A Sebi-appointed committee, chaired by former RBI Governor Bimal Jalan, had last year suggested sweeping changes in the way stock exchanges are owned and run and strongly recommended capping their profitability and not allowing them to get listed to safeguard their front-line regulatory role.

Gopalan said consultations on the report were still on.

Earlier this week, the government held discussions on the report with the stock exchanges and other stakeholders and sought a roadmap by May 30 for segregation of regulatory and commercial roles of the exchanges, sources said.

Sebi had set up in January 2010 this committee for review of ownership and governance norms for market infrastructure institutions such as stock exchanges and the panel submitted its report to the regulator in November last year.

The proposals generated intense debate with opposition expressed on proposals like non-listing of bourses and cap on profitability, terming them anti-investor measures.

In the wake of stiff opposition to the proposals, Sebi later put the ball in the government's court.

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First Published: May 26 2011 | 5:22 PM IST

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