Corporate membership eligibility for stock exchanges requires director-shareholder majority and unlimited liability; government may permit specified corporations.
Amendment prescribes that a company is eligible for election as a stock exchange member only if it is lawfully formed, a majority of its directors are shareholder-members of that exchange, and the directors who are exchange members have unlimited liability; the Central Government may recommend relaxation permitting admission of specified public financial corporations, insurance and development institutions, certain registered companies and subsidiaries engaged in merchant banking or securities dealing.

Regional stock exchange designation enables automatic cross-listing on other recognised exchanges after regional listing.
The draft amends the 1957 Rules by defining regional stock exchange relative to a company's registered office and by substituting regional terminology into the listing rule; it adds that securities listed on the regional stock exchange shall, upon the company's application, be listed on every other recognised stock exchange without production of the documents and particulars otherwise required for initial listing.