Corporatisation and Demutualisation of Stock Exchanges

Definition of Corporatisation and Demutualisation

As per 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 (21 of 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;

As per 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 in accordance with a scheme approved by the Securities and Exchange Board of India;