Corporatisation & Demutualisation of Stock Exchanges in India

Definition of Corporatisation

Corporatisation is defined under 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.

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

Definition of Demutualisation

Demutualisation is defined under 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 SEBI."

List of Stock Exchanges that have been demutualised:

• Calcutta Stock Exchange;

• Madras Stock Exchange;

• Delhi Stock Exchange;

• Pune Stock Exchange;

• Bangalore Stock Exchange;

• Ahmedabad Stock Exchange;

• Vadodara Stock Exchange;

• Jaipur Stock Exchange;

• Cochin Stock Exchange;

• Bhubaneswar Stock Exchange;

• Guwahati Stock Exchange;

• Ludhiana Stock Exchange;

• Saurashtra Kutch Stock Exchange;

• Magadh Stock Exchange.