BSE forges ahead with demutualization

Demutualisation is described as a process by which a member-owned mutual organisation converts into a company owned by shareholders. Usually, the members exchange their proprietary rights for shares of the demutualised company. Currently, government through the Ministry of Finance and Development Planning controls the BSE.

BSE deputy chief executive officer, Thapelo Tsheole said demutualisation would enhance the BSE’s efficiency by allowing a more flexible governance structure, which will foster decisive action in response to the business environment.