LSE likely to get Sebi nod in a week
MARKET regulator Securities and Exchange Board Of India (Sebi) is likely to give permission to the demutualisation process of Ludhiana Stock Exchange (LSE) within a week’s time. According to sources, the exchange has to complete the process of disinvestments by September 14. As per the Securities Contracts (Regulation) Act, 1956, every recognised stock exchange in the country had to sell 51% of its stake to non-brokers, a move called demutualisation, within a stipulated time after such a scheme has been approved by Sebi. LSE has got application for issuing more than 65% stake to non-brokers, according to sources. Once the exchange is demutualised, LSE would also get converted into an organisation ‘for profit’ from a ‘non-profit organisation’. Apart from that the name of the Ludhiana Stock Exchange Association would be changed to Ludhiana Stock Exchange Limited. A 15- member disinvestments committee, headed by Mr D P Gandhi, has been meeting frequently to explore various options before the exchange for successfully implementing the demutualisation scheme. The exchange has appointed Deloitte Touche Tohmatsu as its valuer. The valuation of the exchange is likely to be completed soon. A few months back, National Stock Exchange tied up with six regional stock exchanges in the country. LSE happens to be one of them. Right now, LSE is trading through its subsidiary LSE Securities Ltd (100 % owned by the exchange).