ABSTRACT
Developments in information technology have truly revolutionised the activities of stock exchanges all around the world. Their scope of activities appears to have been limited to providing effective order processing and matching mechanisms. However, new services have emerged, in the form of clearing corporations and depository services, which have been entrusted with the responsibility of managing clearing and settlement functions. Stock exchanges have widened their reach with automation and this has certainly helped in reducing order fragmentation. Contemporary stock exchanges can now rightly focus on provision of fair trading and investor education services. However, this calls for significant investment in infrastructure specifically investment in information and communication technology. The need for resources has pushed stock exchanges to reorganise themselves as 'for profit' organisations. The demutualised stock exchanges have realised benefits of separation of ownership and membership and have harnessed financing flexibility, necessary for responding to evolving knowledge economy.
