Asilver lining of the recent global financial crisis has been the subsequent introspection on market structures and institutions, and how their interplay could impact systemic stability.
In 2010, India’s securities regulator, the Securities and Exchange Board of India (SEBI), received the report of the Bimal Jalan Committee (chaired by a former governor of the Reserve Bank of India), which reviewed ownership and governance of market infrastructure institutions such as stock exchanges and clearing corporations (MIIs) in India.
More recently, pursuant to proceedings in the Supreme Court of India concerning the MCX Stock Exchange, SEBI notified the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012, on 20 June (SECC Regulations), to regulate the recognition, ownership and governance of stock exchanges and clearing corporations in India. The SECC Regulations replace the Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognized Stock Exchanges) Regulations, 2006 (MIMPS Regulations).
Siddharth Hariani is a partner, Aditya Bhargava is a senior associate and Davis Kanjamala is an associate at the Mumbai office of Phoenix Legal.
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