The organisation, 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 to function under the rules, regulations and bylaws approved by the Central Government.At present there are 24 stock exchange in India.
The stock exchanges of India have the following organisational form:
1. Voluntary non-profit making associations
2. Public limited company
3. Company limited by guarantee
The governing body is responsible for policy formulation and proper functioning of the exchange, having wide range of powers viz.
1. Elect the office bearers and set up committees
2. Admit and expel members
3. Manage the properties and finance of the exchange
4. Interpret rules, regulations and by-laws
5. Adjudicate disputes
6. Conduct the affairs of the exchange