Madhya Pradesh Stock Exchange, set up as 'association of persons', is on the verge to get incorporated as a 'for-profit company limited' by the shares and demutualisation. With this, the ownership and management will be segregated from their trading rights.
Then, there will only exist one class of trading members who will be enjoying similar rights and privileges. A uniform standard will be maintained in terms of the capital adequacy, deposits and fees for admitting any one as a trading member or for accepting his surrender.
Voting rights of the shareholders, also trading members, will be limited to 5% and people who are not shareholders but having trading rights will hold minimum of 51% of equity stake of the corporatised and demutualised stock exchange.
In 1999-2000, Madhya Pradesh Stock Exchange Ltd. (MPSE) had a total of 187 brokers, out of which 28 were corporate brokers. Among 187 brokers, it was further classified as 155 proprietor brokers, 4 partnership brokers and 28 corporate brokers Then, there were only 5 sub-brokers registered.
Madhya Pradesh Stock Exchange Ltd.
Palika Plaza, Phase II
201, IInd Floor, MTH Compound
Indore 452 001
India