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Corporatisation and Demutualisation of Stock Exchanges

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:

 o Calcutta Stock Exchange
 o Madras Stock Exchange
 o Delhi Stock Exchange
 o Pune Stock Exchange
 o Bangalore Stock Exchange
 o Ahmedabad Stock Exchange
 o Vadodara Stock Exchange
 o Jaipur Stock Exchange
 o Cochin Stock Exchange
 o Bhubaneswar Stock Exchange
 o Guwahati Stock Exchange
 o Ludhiana Stock Exchange
 o Saurashtra Kutch Stock Exchange
 o Magadh Stock Exchange

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