New Delhi, Jan 07 (Agencies): Market regulator Sebi has begun the process of finalising its guidelines on the way bourses are owned and do business, based on the feedback received on  recommendations made by a committee set up by the regulator on this matter.

In addition to the comments received by Sebi from various stakeholders such as exchanges, market participants and investors, the regulator would also take into account views
expressed by eminent personalities in media and on public forums, a senior official said.

A synopsis of the feedback on the recommendations is likely to be placed before the Sebi board in its next meeting, but a final decision is not likely soon because of varied reaction generated by the proposals, he added.

Sebi had put forth the recommendations made by the Bimal Jalan Committee for review of ownership and governance norms for market infrastructure institutions on November 23, 2010 and had invited public comments on the same till December 31.
The committee suggested sweeping changes in the way stock exchanges are owned and function and its proposals include capping their profitability and not allowing them to get
listed to safeguard their front-line regulatory role.

The surveys, conducted by research firm IMRB, economic think-tank and financial data provider CMIE and stock market website EquityMaster.Com were apparently aimed to gauge the opinion of stakeholders and investors on the issue.

Out of these, IMRB survey was commissioned by MCX Stock exchange, a stakeholder in the issue and among those to be affected maximum by the recommendations. The bourse, which is currently allowed to trade in currency futures only, has opposed vehemently the committee's various proposals.

The IMRB and the Jalan committee surveys were based on responses from stakeholders in the exchange space.

However, IMRB claimed to have approached a total of 101 respondents for the survey, as against 29 respondents in the Jalan committee survey.

The CMIE survey claimed to have posed five questions about the issue to as many as 5,392 people, including retail investors.

The Jalan committee recommendations, incidentally, are limited to market infrastructure institutions – stock exchanges, depositories and clearing corporations, and not aimed at retail investors.

The survey also sought to gauge the opinion of retail investors on the issue.

The various options now likely to be considered by Sebi include making listing optional for bourses and separating their regulatory and business roles.

The regulator may also consider whether bourses can be asked to put in place 'Chinese Walls' between their regulatory and corporate functions.

The move is aimed at keeping the front-line regulatory role of the bourses unaffected by their profit-making and other business interests after they become publicly held companies following their listing.