meaning of corporatisation & demutualisation

This query is : Resolved 

30 September 2010

What is Corporatisation and de mutualisation in Securities Contracts (Regulation) Act, 1956

Aditya Maheshwari (Expert)
30 September 2010

Demutualisation refers to the legal structure of an exchange whereby the ownership, the management and the trading rights at the exchange are segregated from one another.

Simple Term is that If u have a partnership firm and now u are converting it into company, where it has its own identity separate to its management.

If you aquire any Share due to demutualisation of any stock exchange that would be an exempt transfer. But if you subsequently sale those shares then in that case capital gain would attract normally.

Rohit Jain (Querist)
02 October 2010

Thank you very much sir......... now it will help to do this chapter............

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