The Hindu Business Line : `Changes in law key to SEs' demutualisation'

THE Securities and Exchange Board of India (SEBI) Chairman, Mr G.N. Bajpai, on Friday made it clear that the process of demutualisation of certain bourses in the country could gather momentum only after the necessary legislative changes are brought about by the Union Government.

"It is up to the Government to carry out the changes in legislations. An announcement has already been made in the Budget. Demutualisation will be started soon. We are ready," Mr Bajpai said on the sidelines of a seminar organised by the Institute of Internal Auditors here.

The Finance Minister, Mr Jaswant Singh, had already stated in his Budget that necessary amendments to the Securities Control and Regulation Act (SCRA) would be proposed in the current session of Parliament, which would enable bourses to separate the ownership of stock exchanges from management resulting in demutualisation.

Further, as a one-time measure, gains, if any, arising from the transactions leading to corporatisation or demutualisation of exchanges would be exempt from capital gains tax, the Minister had announced.

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