When was bse demutualised

It is expected that government will offload or avail part of its shares to be transferred to the Employee Share Scheme. Since the company shares are currently fully subscribed, Tsheole says for BSE Limited to ultimately sell its shares to the public, one of the shareholders would need to set aside a certain percentage for free float.

From the current list of shareholders it is largely expected that the government will be the ne availing part of its shares for free floating. The demutualization and immediate corporatization of the exchange has been as such hailed a success as it does not only result in change of ownership structure but also brings forth enormous efficiencies.

In accordance with the Companies Act, the BSE limited will now have a board comprised of seven independent members as well as additional two that would be nominated by the government and the stock brokering fraternity.

Tsheole says the new board structure will enable the local bourse to discharge its mandate and drive value for shareholders and stakeholders as we strive to become a world class securities exchange. The transition from a member owned entity to an incorporated company has dealt away with the conflict of interest that was there due to the fact that the Chief Executive was accountable to the board — mainly made up of stock brokers yet it was the same Chief Executive who was supposed to re-direct the brokers in cases of misconduct.

How to Subscribe this feed? Download any online RSS reader of your choice. History and Milestones. BSE, the first ever stock exchange in Asia established in and the first in the country to be granted permanent recognition under the Securities Contract Regulation Act, , has had an interesting rise to prominence over the past years.

The journey of BSE is as eventful and interesting as the history of India's securities market. Following are some of the key milestones and achivements. Date on which Corporatisaton and Demutualisation was achieved. At par with international standards, BSE Ltd. Trending BSE. January 29, June 07, BSE touches record milestone of over 7 crore registered users. June 11, February 03, July 03, Wealth Wise Series How they can help in wealth creation. Honouring Exemplary Boards.

Deep Dive Into Cryptocurrency. ET Markets Conclave — Cryptocurrency. Reshape Tomorrow Tomorrow is different. Let's reshape it today. Corning Gorilla Glass TougherTogether. ET India Inc. ET Engage. ET Secure IT. ET Editorial. Board Composition : The Governing Board, on or after due date, may be constituted in accordance with the provisions of the Articles of Association of Bombay Stock Exchange Limited in force from time to time, provided that -.

SEBI shall have the right to nominate as many directors on the Governing Board, as and when deemed fit, irrespective of the size of the Governing Board. It may not use the assets other than current assets of BSE transferred to it or the proceeds from disposal of such assets or the proceeds from disposal of successive species of assets acquired from the proceeds of disposal of such assets for any purpose other than the business operations of the stock exchange.

Uniform Standards: Uniform standards may be followed for admitting any person as a trading member of the exchange or accepting his surrender. All trading members may have similar rights and privileges. This is necessary to avoid any problems pertaining to interpretation of the term "persons acting in concert" at a later date and to facilitate the leading Public Financial Institutions to acquire a strategic stake in the equity of the exchange.

Therefore, the trading members should be a stock broker or a trading member or clearing member of any segment of the exchange. In this regard BSE has submitted that the manner of appointment of remaining directors will be provided in the Articles.

However, it has suggested modified clause which appears to give perpetual preferential treatment to the existing members, as they used to have so far. It is noted that the Scheme provides for most of the matters required for and in connection with its corporatisation and demutualisation.

The findings in respect of the submissions of BSE are as follows. SC R A does not provide for differential treatment amongst the shareholders who are stock brokers with respect to voting rights. It is not desirable to have such unregistered persons as trading members in an exchange and by virtue of the same, as representatives of trading members on the Governing Board of Bombay Stock Exchange Limited.

If such persons wish to be trading members, they should have SEBI registration. However, taking into consideration the submission of BSE, such members may, within 3 months from the due date, obtain SEBI registration.

Therefore, a suitable provision has been made in the Scheme.