Sebi seeks public comments to amend norms governing bourses

Regulator Sebi today issued a consultation paper to review the norms governing stock exchanges, clearing corporations and depositories in view of changing market dynamics.
The market watchdog has sought comments from public till March 31 in this regard.
The move comes after Sebi received representations from various stakeholders on issues related to governance, ownership, concerns arising post listing of stock exchanges and depositories.
It is felt that the rules governing stock exchanges, clearing corporations and depository participants may require a comprehensive review, so as to address the concerns of stakeholders and to keep such norms in sync with the changing market dynamics.

The final regulation will be put in place after taking into consideration views of the public.
The board of Sebi in December 2009 had constituted a committee under the Chairmanship of Bimal Jalan, former RBI Governor, to examine issues arising from the ownership and governance of market infrastructure institutions (MIIs).

The committee had recommended that the working of the MII should be reviewed by Sebi after five years, as the stock market is evolving and a review may be inevitable in light of the new technological developments, introduction of new products, growth of financial markets, trade and capital flows and global integration.

The committee had also recommended to review the SECC (Stock Exchanges and Clearing Corporations) after 5 years. The period of 5 years from the date of notification of SECC Regulations June 2012 will be getting over in June 2017.
Earlier this month, Sebi's board had discussed the review of regulations and relevant circulars pertaining to market infrastructure institutions -- stock exchanges, depositories and clearing corporations.
"The five-year period is over. Sebi has come out with many circulars and we would see how those changes can be incorporated in the regulations itself," Sebi Chairman U K Sinha had said.