Date:07/09/2005 URL: http://www.thehindu.com/2005/09/07/stories/2005090701541700.htm

Business

SEBI approves demutualisation of CSE

Special Correspondent

KOCHI: The Securities and Exchange Board of India (SEBI) has approved the demutualisation scheme of Cochin Stock Exchange (CSE) Limited.

The demutualisation scheme is prepared in accordance with the amendments made in the Securities Contracts (Regulations) Act. The scheme is aimed at ensuring professionalism and transparency in the working of the Stock Exchanges. R. K. Pillai, executive director of the Cochin Stock Exchange, said the Exchange was initiating steps for the implementation of the demutualisation scheme. The scheme envisages separation of ownership and trading rights at the hands of the members. Presently, the members of the Exchange are having dual rights - one as a shareholder of the Exchange and the other, exercising the trading rights. On implementation of the scheme, a person holding shares need not be a trading member. Similarly, a trading member need not be a shareholder of the Exchange.

The scheme also provides for reduction of shareholding of members to a level of 49 per cent.