THE EFFECTS OF DEMUTUALIZATION ON EXPANSION OF STOCK MARKET GROWTH: EVIDENCES FROM INDIAN STOCK MARKET AND LESSON FOR PAKISTAN STOCK EXCHANGE (PSX)

The decision to transform an exchange’s governance andownership structure is influenced by globalized market trend whichallows exchanges to gain from the benefits of internationalizationand integration. This article examines the impact ofdemutualization on stock market indicators. Bombay StockExchange and National Stock Exchange of India were taken asstatistical frame. Wilcoxon sign rank test, Pair sample T-test, andMANOVA were used as statistical techniques. Pre-Post researchdesign was used and data (4 years before and 4years after thedemutualization) were collected from the website of the worldfederation of the exchanges. The result of Wilcoxon sign rank testand Pair sample T-test indicates significant differences in stockindex, market capitalization, value of share trading and the numberof listed companies before and after the demutualization of Indianstock exchanges. Likewise, the results of MANOVA elucidatessignificant influence of demutualization on stock market indicators,and conclude that demutualization leveraged Indian stockexchanges to a great extant