demutualisation and corporatisation
This query is : Resolved
shankar.m.p
(Querist)
30 March 2010
could anyone explain me the concept of demutualisation and corporatsation and the differences between both ?
Aditya Maheshwari
(Expert)
13 April 2010
In India These terms are defined by section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956)
(aa) "corporatisation" means the succession of a recognised stock exchange, being a body of individuals or a society registered under the Societies Registration Act, 1860 (21 of 1860), by another stock exchange, being a company incorporated for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities carried on by such individuals or society;
(ab) "demutualisation" means the segregation of ownership and management from the trading rights of the members of a recognised stock exchange in accordance with a scheme approved by the Securities and Exchange Board of India;;
(aa) "corporatisation" means the succession of a recognised stock exchange, being a body of individuals or a society registered under the Societies Registration Act, 1860 (21 of 1860), by another stock exchange, being a company incorporated for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities carried on by such individuals or society;
(ab) "demutualisation" means the segregation of ownership and management from the trading rights of the members of a recognised stock exchange in accordance with a scheme approved by the Securities and Exchange Board of India;;
Message likes :
3 times
Aditya Maheshwari
(Expert)
13 April 2010
An example for the same would be the corporatisation & demutualisation of the Bombay Stock Exchange to Bombay Stock Exchange Ltd. which is the most popular scheme.
Before the scheme BSE was an Association of person and then after the scheme it became BSE Ltd. i. e. a limited company and this is called corporatisation.
Before the scheme both membership right & right to trade where held by the trading member only. Before demutualisation, 790 broker-members held 100% in the 131-year-old exchange.
After the scheme corporatisation ownership & membership right hae been segregated
Before the scheme BSE was an Association of person and then after the scheme it became BSE Ltd. i. e. a limited company and this is called corporatisation.
Before the scheme both membership right & right to trade where held by the trading member only. Before demutualisation, 790 broker-members held 100% in the 131-year-old exchange.
After the scheme corporatisation ownership & membership right hae been segregated
Message likes :
3 times
Aditya Maheshwari
(Expert)
13 April 2010
for details of the scheme pleas refer this link https://www.bseindia.com/whtsnew/SebiOrdCorpDMut.htm
Message likes :
1 times
shankar.m.p
(Querist)
18 April 2010
thank u sir :)
Aditya Maheshwari
(Expert)
18 April 2010
You are welcome
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- IMS (import of goods) ITC related
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Form 144 TDS Return Validation error
- LLP audit and disclosure
- GST ITC as per notification 12/2023- central tax
- Form 144 TDS Return Validation Error – Mandatory Fields
- Capital Gains Tax on Inherited Mutual Fund
- Rent agreement of House of deceased person
- Ito add credit side of bank
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
