Organisation and Management

The organization, management, membership and functioning of stock exchanges in India are governed by the provisions of the Securities Contracts (Regulation) Act, 1956. This Act permits only recognized stock exchanges which have to function under the rules, by –laws and regulations approved by the Central Government.
At present the stock exchanges in India have one of the following organizational forms:
• Voluntary non-profit- making association
• Public limited company
• Company limited by guarantee.


A stock exchange is managed by a governing body consisting of:
1. a president,
2. a vice-president,
3. an executive director,
4. the elected directors,
5. the public representatives, and
6. the nominees of the Government(s)

The governing body is responsible for policy formulation and smooth functioning of the exchange. They have the following wide-ranging powers:

1. Elect office bearers and set up committees
2. Admit and expel members
3. Manage the properties and finance of the exchange
4. Interpret rules, by –laws and regulations of the exchange
5. Adjudicate disputes
6. Conduct the affairs of the exchange.

Major stock exchanges are managed by Executive Directors. He is a full-time employee or the exchange with substantial powers. Smaller stock exchanges are managed by Secretaries. He is also a full-time employee of the stock exchange. He attends to the day-to-day functioning of the exchange.