Corporatisation and Demutualisation of Stock Exchanges

Definition of Corporatisation

Corporatisation is defined in the section 2(aa) of Securities Contracts (Regulation) Act, 1956.

Corporatisation means the succession of a recognised stock exchange, being a body of individuals or a society registered under the Societies Registration Act,1860, by another stock exchange, being a company incorporated for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities carried on by such individuals or society.

In simple words, it means the conversion of a stock exchange into a corporate organisation from its earlier non-corporate form.


Definition of Demutualisation

Demutualisation is defined in the section 2(ab) of Securities Contracts (Regulation) Act, 1956.

Demutualisation means the segregation of ownership and management from the trading rights of the members of a recognised stock exchange as per the scheme approved by SEBI.


List of Stock Exchanges that have been demutualised :
  1. Calcutta Stock Exchange
  2. Madras Stock Exchange
  3. Delhi Stock Exchange
  4. Pune Stock Exchange
  5. Bangalore Stock Exchange
  6. Ahmadabad Stock Exchange
  7. Vadodara Stock Exchange
  8. Jaipur Stock Exchange
  9. Cochin Stock Exchange
  10. Bhubaneswar Stock Exchange
  11. Guwahati Stock Exchange
  12. Ludhiana Stock Exchange
  13. Saurashtra Kutch Stock Exchange
  14. Magadh Stock Exchange