The Bombay Stock Exchange (BSE) has formed a 16-member committee to advise its governing board on non-regulatory and operational matters, including product design, technology, charges and levies. The committee is headed by BSE non-executive chairman S Ramadorai and includes trading members and representatives from brokerages such as CLSA, ICICI Securities, Angel Broking and Religare Securities.
Recently, the Securities and Exchange Board of India (Sebi) had said it wasn't essential to have trading members on the boards of stock exchanges. The exchanges should form separate committees and seek their advice, it had added.
The BSE board believes product innovation, technology and risk management would play key roles in the highly competitive stock exchange industry. In these segments, the exchange plans to seek suggestions and ideas from stakeholders in the business.
BSE said the new committee was in conformity with the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012. According to the regulations, the committee would primarily focus on developing viable and sustainable capital market products and services for existing as well as new investors. It would also suggest an appropriate framework for all non-regulatory issues faced by investors.
The National Stock Exchange and MCX-SX may also form such committees.
In its recent regulations on stock exchanges, Sebi had said those in charge of broker regulations, listing regulations and surveillance would have to report to both the chief executive officer of the bourse and to a committee of the board, primarily comprising independent directors. Sebi would also form a committee to deal with conflict of interest in stock exchanges.
