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Corporatisation of bourses this fiscal: Sebi

Securities and Exchange Board of India said on Tuesday that it will implement demutualisation of bourses and set up a Central Listing Authority this fiscal following the acceptance of the Kania committee recommendations, Sebi chairman G N Bajpai said in New Delhi.

Allaying fears about the closure of regional loss-making bourses, he said it was now up to them to adopt the appropriate model for corporatisation of exchanges.

The Sebi board approved the Kania committee report last week. Some of the local exchanges like Delhi Stock Exchange are preparing the draft and would submit their plans within two months.

The Sebi chief also said the proposed Central Listing Authority would also be set up this fiscal. The authority would have representation from the regional bourses, he added.

The move comes in the wake of listing of dubious companies in smaller exchanges taking advantage of slack listing criteria.

The CLA would frame uniform criteria for listing for companies, which would prevent unscrupulous promoters from entering the capital market through smaller exchanges.

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