Sebi sets deadline for SEs to corporatise

Sebi has set a deadline of March 31, 2005 for all stock exchanges (SEs) to convert themselves into corporatised and demutualised entities.

The regulator has chalked out a time-bound programme to achieve this process and has also asked SEs to reduce the stake of their trading members to 49 per cent within one year of turning into corporate entities, that is, by March 31, 2006. Sebi has spelt out tough steps to be taken by the regulator in case of failure to meet this time schedule, including de-recognition.

According to sources, Sebi informed all the SEs, which are required to corporatise and demutualise themselves, to submit their schemes of corporatisation and demutualisation (C&D) on or before December 15, 2004.