Sebi meet on demutualisation next week

THE EUROMONEY INDIA CONFERENCE

The Securities and Exchange Board of India will meet representatives of all stock exchanges next week to formulate a demutualisation and corporatisation process that would be implemented within a year.

The meeting follows an Ordinance promulgated last month barring brokers from managing the bourses. "We are working fast. "We have called all exchanges for a meet on November 9," Sebi chairman G N Bajpai said at the Euromoney meet.

Demutalisation is expected to help greater trade in the shares of small companies shares and safeguarding small investors.

The Ordinance would amend the Securities Contract (Regulations) Act and Depositories Act to pave the way for demutualisation and corporatisation of bourses to ensure their orderly development and functioning and also align provisions of these laws with Sebi Act regarding penalties, appeal and procedures of compounding of offence.