Govt officials, bourses to discuss Jalan panel proposals

Senior government officials and top stock exchange executives will discuss tomorrow the long-pending proposals made by a Sebi-appointed panel for sweeping changes on how the bourses should be owned and run.

The recommendations of the committee, headed by former RBI governor Bimal Jalan and submitted to market regulator Sebi in November last year, would be discussed at a workshop organised by the industry chamber Ficci here.

Those expected to participate in the discussions include R Gopalan, Economic Affairs Secretary R Gopalan, Joint Secretary (Capital Markets) Thomas Mathew, and Jalan himself.

Besides, top executives of three national stock exchanges -- NSE, BSE and MCX-SX -- as also representatives from a host of smaller bourses and other market entities are expected to be present alongside other industry experts.

The implementation of the recommendations made by the Jalan committee has been pending for almost a year now.

Among other proposals, it has strongly recommended capping the profitability of bourses and barring them from getting listed to safeguard their front-line regulatory role.

The committee, set up in January 2010 for review of ownership and governance norms for market infrastructure institutions, submitted its report to Sebi in November last year. Sebi then invited comments on it till December 31.

The proposals generated intense debate and opposition was raised to proposals like non-listing of bourses and cap on profitability, terming them as anti-investor measures.

In the wake of stiff opposition to the proposals, Sebi later put the ball in the government's court.

Thereafter, a committee was set up by the Ministry of Corporate Affairs (MCA) to discuss the proposed rules, which held its consultations in May.

In its meeting with the representatives from the bourses, industry bodies, accounting bodies and other market entities, the MCA sought suggestions a roadmap for segregation of regulatory and commercial roles of the exchanges.

It was proposed that steps need to be taken to keep the front-line regulatory role of the bourses unaffected by their profit-making and other business interests after they become publicly held companies following their listing.

On its part, the Sebi board has not been even discussing the matter in its last few board meetings, as it was waiting for suggestions from the government on the contentious issues emanating from the Jalan committee proposals.

It is expected that the matter could come up for the Sebi board's consideration in its next meeting, once the government takes a final view after consultations with various parties.