BSE sets up advisory panel of trading members

The Bombay Stock Exchange (BSE) has formed a 16 member committee to advice it on non-regulatory and operational matters including product design, technology, charges and levies. The committee headed by BSE's non-executive chairman S Ramadorai and consisting of trading members will give its suggestions to the governing board of the exchange.

The Securities and Exchange Board of India (Sebi) had recently said that stock exchanges need not have trading members on their board but form a separate committee to take their expert advice. Brokerages representing the committee include CLSA, ICICI Securities, Angel Broking and Religare Securities among others.

There is a belief with in BSE board that product innovation, technology and risk management will pay a key role in the highly competitive stock exchange industry and the bourse wants to move ahead with suggestions and expert ideas of stake holders in the business.

BSE said, committee was in conformity with the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012. As per regulations, the committee will primarily focus on developing viable and sustainable capital market products and services for existing as well as new investors. The committee will also suggest appropriate framework for all non-regulatory issues faced by the investors currently.

Both the other exchanges the National Stock Exchange (NSE) and MCX SX may also form such a committee.

In its recent regulations on stock exchanges, Sebi had said that heads of broker regulations, listing regulation and surveillance will have to report to both the chief executive officer of the bourse and to a committee of the board headed by and majority composed of independent directors. In addition, Sebi will create a conflict resolution committee to deal with conflicts of interest in the stock exchanges.