Securities and Exchange Board of India (hereinafter referred to as SEBI) had discussed the issue of demutualisation with the stock exchanges from time to time.

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....The Securities and Exchange Board of India (hereinafter referred to as "SEBI") had discussed the issue of demutualisation with the stock exchanges from time to time and Whereas SEBI Board in its meeting held on December 28, 2001, discussed the issue of demutualisation of the stock exchanges and decided that henceforth no broker member shall be an office bearer of an exchange that is hold the position of the President, Vice-President, Treasurer etc., and the other administrative and legal modalities for corporatisation and demutualisation of exchanges of the stock exchanges are being worked out; and Whereas subsequently, SEBI directed all the exchanges including The Uttar Pradesh Stock Exchange Association Ltd (hereinafter referred to as "....

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...., UPSE vide its letter dated 18.3.2002 informed that the members alleged that the notice calling the meeting and its resolution are not proper, that the Governing Board had failed to give valid reasons for the notice and the proposed resolution and the members raised several queries which were not answered by the Governing Board and the Chairman of the meeting Shri H K Garg adjourned the extra ordinary meeting to April 06, 2002 as per the provisions of the Companies Act, 1956 and Whereas, it is noted that that the governing board had failed to explain whether the proposed resolutions are in the interests of the exchange, that the governing board was not able to explain properly the policy of the central government on demutualisation and co....

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....in accordance with the provisions of the said Section 8; and in view of the failure of the Governing Board of UPSE to address the queries of the members and in view of the failure of UPSE to amend the articles of association of UPSE within the stipulated time and thereby comply with order dated 10.1.2002, SEBI is forced to notify amendments to article 112 of UPSE and Whereas most of the stock exchanges have amended their rules/articles of association to give effect to the order of 10.1.2002, and there is failure of UPSE to amend article 112, in the light of the above SEBI is of the opinion that in the interests of the investors and the capital markets, as also in public interest, it is necessary and expedient to amend the Article 112, in t....