The government said on Thursday that it was committed to demutualisation and corporatisation of stock exchanges to prevent recurrence of securities scams.
Two bills to amend Securities Contract (Regulation) Act and Banking Regulation Act, which have lapsed, would be reintroduced after incorporating some changes to make them more effective, the government said in its second Action Taken Report on joint parliamentary committee's findings on 2001 securities scam.
While amendments to Securities Contract (Regulation) Act are to bring about demutualisation and corporatisation of stock exchanges, the amendment to Banking Regulation Act is to strengthen the urban cooperative banks.
The report, tabled in Parliament, said the government was considering other legislations like Company Law (Amendment) Bill and Government Securities Bill.
Asserting that "effective actions would be taken against those who are found guilty," the government said, it would ensure that the remaining recommendations of the JPC were "most expeditiously" acted upon.
Demutualisation envisages separation of ownership rights and trading rights, making the management of a bourse free from brokers, while corporatisation is aimed at letting professionals run the bourses.
The need for strengthening the control over UCBs comes in view of multi-crore goverment securities scam involving such banks.
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