1. Corporatisation and Demutualisation of Stock Exchanges in India By, PawanJaniani (2010146) PiyushRanjan (2010148)

3. Mutual Structure of Indian Stock Exchange

4. Drawbacks Prior to Demutualisation

5. Demutualisation and Corporatisation

6. Steps towards Demutualisation

7. Demutualisation of Regional Stock Exchange

8. Advantages

9. Research and Methodology

10. Challenges

12. Ahmadabad and Indore stock exchanges were other exchanges having similar structure.

14. These exchanges worked like a co-operative society where the share of the company entitled the owner to be the shareholder of the exchange and also gave him a right to act as broker on the exchange.

16. Investor’s interest was ignored as brokers were manipulating the market for their own advantage

17. Scams took place in pre-demutualization phase-1992- Harshad Mehta scam & 2001-Ketan Parekh Scam.

18. Lack of strict vigilance on the market-No one person or management was there to look after the affair of the exchange.So Indian market and financial sector felt the need of demutualisation.

21. Exchanges like BSE that were not even a corporate entity needed to be converted from “association of persons” to a Company limited by shares.

23. In 2001, Finance minister pledged on the floor of the parliament to demutualise all Indian Exchanges

24. SEBI appointed Kania committee to look in to the various issues relating to Demutualisation including questions relating to broker ownership

26. Disbursal of majority shareholding post demutualisation to non-brokers.

27. Concept of converting part of reserves of the exchange into deposit from brokers and issuance of shares

28. Consolidation of exchanges recommended

30. Amendments to Rules and MOA and AOA also submitted in July 2003(based on Kania committee report) to SEBI for approval.

32. Magadh Stock Exchange

33. Jaipur Stock Exchange

34. Ludhiana Stock Exchange

35. Saurashtra Kutch Stock Exchange

36. Delhi Stock Exchange

37. Bhubaneshwar Stock Exchange

38. Cochin Stock Exchange

39. Pune Stock Exchange

40. Bangalore Stock Exchange

41. Ahmedabad Stock Exchange

42. Calcutta Stock Exchange

43. Madras Stock Exchange

45. Mangalore Stock Exchange

46. Meerut Stock Exchange

48. Either by becoming trading arms of BSE & NSE, or

49. Number of regional stock exchange joins hands to make a separate platform

57. So we see that the turnover increases at faster rate after May, 2005. But in the pre-demutualisation phase there is not any fixed trend in the turnover. Sometime the figure is increasing and sometime it is diminishing. Therefore we can conclude that the performance of the Bombay Stock Exchange has revamped because of demutualisation.

59. The same board and the same organizational structure will continue to exist and nothing much will be achieved

60. The government can not solve the exchange’s management problem by steering the demutualisation process

62. They also have the fear of paying huge tax conversions

63. This new revolution will become successful when the government will take the necessary steps

65. Thank You !