Mumbai, February 22, 2017

The Securities and Exchange Board of India (Sebi) on Wednesday has issued a consultation paper to review regulations for stock exchanges, clearing corporations and depositories.

Capital market regulator has sought comments till March 31 in this regard. The proposal is in line with recommendations of a committee headed by Bimal Jalan, former Governor of the Reserve Bank of India (RBI).

The committee had recommended that Sebi should review the operations of the market infrastructure institution (MII) after every five years on account of the rapid evolution of the stock market. Other factors underlined by the committee included technological developments, introduction of new products, global integration and growth of financial markets, trade and capital flows.

The committee had also recommended a 5-year-review of the Stock Exchanges and Clearing Corporations (SECC). The final regulation will be put in place after taking in the views of the public.

"It is felt that the SECC Regulations, depositories, participation regulations and the December 13 circular may require a comprehensive review, so as to keep the regulations synchronised with the changing market dynamics," added the circular.

Earlier this month, Sebi's board had discussed the review of regulations and relevant circulars pertaining to the MIIs-- stock exchanges, depositories and clearing corporations.

[The Business Standard]