Framework Drawn For Uniform Se Laws

"We will consider the ICAI proposals at the June 12 meeting," said M R Mayya, former executive director, Bombay Stock Exchange who is on the Sebi committee.

The terms and conditions relating to the appointment of executive director, his powers, as well as the rights of those on the governing board of the stock exchange, and the public nominees on the board will be debated by the Sebi committee, added Mayya.

The thrust will be to make the executive director of the exchanges more independent.

According to the existing regulations, the executive director looks after the day to day administration of the exchange, while the president holds a more privileged position.

 

The Sebi committee will work out a final blueprint relating to the rules, regulations and bylaws of the stock exchanges in about four months, Mayya said.

The committee comprises three Sebi officials, including N Parikh, M D Patel, Narang from the Institute of Chartered Accountants, president of the Madras Stock Exchange and the executive director of the Ahmedabad bourse, among others.

The major thrust of the new regulations was on updating the old and outdated bylaws of the exchanges to suit the modern times, Mayya revealed.

For instance, the automation of stock exchanges, which has been the most important change, has to be accounted for in the new uniform bylaws.

This and other changes in the trading and settlement systems has meant the bylaws would have to be altered and made uniform to suit these changes.

The Sebi committee will work out a final blueprint relating to the rules, regulations and bylaws of the stock exchanges in about four months, Mayya said