The annual meeting called by Sebi with the top brass of leading bourses will discuss whether the listing of shares before allotment is possible and if it can be than what changes are required in the present structure. Under the existing system shares are listed after allotment and the move to list before allotment is line with the international standards. The market regulator is also concerned about the low delivery based trading volumes and how to increase this is an important item on the agenda for the meeting. This is very important in the stock markets as delivery percentage, that is delivery exchanged as a percentage of total turnover, is an important indicator for investment trends.

To further increase the delivery based business, Sebi is likely to have differential margins for delivery based transactions, lower transaction charges for delivery based transactions and have a more regulated short sales system.

On the buy-back of shares by companies, the meeting is expected to deliberate on disclosure in trading systems of stock exchanges for buy-back of shares by companies. It would examine whether it is possible to display the price-wise standing of the buy-back offer in the screen of the exchange where the best buy and sell order for the shares are displayed. In addition, the meeting will also discuss whether the company where the buy back offer is open can be flagged in the normal trading screen of the exchanges. This move is expected to be completed in a transparent manner and the market regulator feels that buy-back forms an important part of normal trading.

To enhance the transparency in the functioning of the stock exchanges, the market regulator is also likely to make mandatory for the bourses to disclose their annual accounts to the public through their websites. The meeting will also take into account the issues relating to the use of secondary market for primary issues. Due to a large number ofinactive members of the stock exchanges, the meeting would take up the various exit routes available for the members.

The various options for exit likely to be discussed include surrender or resignation of membership. The exchange in such case may release the refundable security deposit. Another option could be transfer/nomination of the membership. Under this, an outgoing member can transfer his membership to another or he can nominate another incumbent to the memerbship of the exchange. The last option could be buy-back of membership.