The Securities and Exchange Board of India (Sebi) has set up a committee to

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review the ownership and governance structure of market institutions like stock exchanges, depositories and clearing houses.

“After the de-mutualisation of stock exchanges, several new issues have come up. The committee will look into them,” Sebi chairman C B Bhave said.

There was a feeling that the present ceiling of 15 per cent ownership in a stock exchange might come as a deterrent to those who want to promote the exchanges, Bhave added.

The committee, chaired by former RBI governor Bimal Jalan, will look into whether the ceiling needs to be increased and whether exchanges can be effective regulators while being profit-making organisations.

Bhave was speaking after releasing a book by M R Mayya, former executive director at Bombay Stock Exchange titled ‘Glimpses of Indian Stock Markets’.

Other members of the committee are joint secretary in ministry of finance, K P Krishnan; Tata Industries managing director Kishor Chaukar; Kotak Mahindra Bank managing director Uday Kotak; officer on special duty at the National Institute of Securities Markets, G Sethu; Sebi whole-time member K M Abraham and executive director of Sebi (member secretary) J N Gupta.

“The role of market infrastructure institutions has been continuously evolving to meet the challenges of the emerging securities market. These institutions are increasingly called upon to undertake regulation and supervision of the markets, while simultaneously pursuing commercial objectives,” a Sebi release said.

The Sebi chairman also admitted that there was a need to address the issue of India versus Bharat as far as expanding the equity culture is concerned. However, he cautioned that the stock market investing should not be compared to banking sector inclusion. “Banks sell a product that protects the capital and also provides some returns. Stock market investing assures no such thing,” he said, adding that investors should be careful while investing in stocks, where they face the risk of losing a substantial amount of investment too. “With that caveat, we can spread our reach further,” he said.

Bhave also hinted at the arrival of stock market trading through mobile phones. “Stock exchanges are now getting ready for mobile trading. But we need to be careful on what we are recommending to our clients,” he said.