Corporatisation and demutualisation require limiting broker control and ensuring majority public shareholding after regulatory approval. Every recognised stock exchange must submit a scheme for corporatisation and demutualisation for SEBI approval; SEBI may approve after enquiry if in the interest of trade and public, but must not approve schemes proposing issuance of shares for consideration, trading rights in lieu of membership cards, or dividend payments out of reserves or assets. Approved schemes and SEBI orders take effect on Official Gazette publication and bind members, creditors, employees and other interested persons. SEBI may impose conditions including restriction of broker-shareholder voting rights, limits on board appointment rights and broker representation, and require prescribed public shareholding within a prescribed period, extendable for sufficient cause.