Corporatisation & Demutualisation of Stock Exchanges has brought to the fore a new conflict between the ‘profit maximization goal’ of an Exchange vis-à-vis its ‘regulatory role’. Exchanges have traditionally been the first line of regulators in the securities market. With growing commercialisation of the exchanges and the resultant competition between exchanges, it would be necessary for the market regulator to recognize the possibility that exchanges may compromise on its regulatory role in its urge to canvass larger volumes of business from intermediaries and investors.
Internationally, the practice prevalent among regulators has been to allow Exchanges to pursue their commercial operations, while exercising regulatory oversight.
The SEBI Board, in its meeting held on December 22, 2009, (the detailed agenda note is available at http://www.sebi.gov.in/boardmeetings/129/corpgovern.html) decided to set up a Committee to look into the above issues and give suitable recommendations. Accordingly, a Committee under the Chairmanship of Dr. Bimal Jalan has been constituted. The Committee has decided to adopt a consultative process. Accordingly, a questionnaire has been devised to seek
the views of market infrastructure institutions, market participants, users and public on the concerns related to Ownership and Governance of Market Infrastructure Institutions, as elaborated above. You are requested to forward your responses for the questionnaire to any of the following email ids latest by May 10, 2010:
1. bhartendrakg@sebi.gov.in
2. divyav@sebi.gov.in
3. vishakham@sebi.gov.in
3 comments:
yes it is true Exchanges have traditionally been the first line of regulators in the securities market(nse bse).....
your article- Whether BSE/NSE is a regulator or a profit making entity, answer sebi now - is give more news
sir securities market and nse bse is same?
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