After BSE, Ludhiana bourse gets demutualised

After the Bombay Stock Exchange (BSE), the Ludhiana Stock Exchange has become the second to attain demutualisation. According to sources, the process of demutualisation has almost been completed.

After demutualisation, the LSE will also get converted into an organisation-for-profit from a non-profit organisation. Apart from other changes, the name of the Ludhiana Stock Exchange Association will also be changed to Ludhiana Stock Exchange Ltd.

The Securities and Exchange Board of India (Sebi) has asked the regional stock exchanges to demutualise and the deadline for the same is September 15.

"This will mean that brokers can offload their shares," said LSE Chairman BB Tandon.

The idea of demutualisation is in pattern with stock exchanges across the globe where ownership is segregated between the management and trading. "Till now it is brokers, directors as well as traders who are owners."