Government announces corporatisation
of stock exchanges
New Delhi: The central government has
announced its decision to corporatise all stock exchanges in the country and extension of
rolling settlement to 200 category A stocks in modified carry forward scheme, Automated
Lending and Borrowing Mechanism (ALBM) and Borrowing and Lending Securities System
(BLESS). The government has also announced that it will expand the powers of the
Securities and Exchange Board of India (Sebi).
Mr. Sinha has said that these measures are
in response to complaints received by Sebi that stock prices were being manipulated. He
told the parliament that Sebi has already started its investigations into price
manipulation and had assured him that there is no systemic risk to the market and no
danger of a payment crisis. He said that the government would bring in necessary
administrative and legislative changes by which ownership, management and trading
membership of stock exchanges would be segregated from each other on the lines of the
National Stock Exchange (NSE).
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