The union cabinet has approved amendments to Securities Contracts (Regulation) Act, 1956 to enable de mutualisation and corporatisation of stock exchanges. It has also approved amendments to the Depositories Act, 1996.

A proposal to amend the Banking Regulation, 1949 to extend insurance cover for depositors in the urban cooperative banks registered under the Multi-state Cooperative Societies Act was cleared too.

The amendment will enable the Reserve Bank of India of India to issue licenses to these societies to carry on their business as bankers.

The bills are expected to be introduced in Parliament when it reconvenes for the winter session late November.

According to government sources, amendments to the SCRA seeks to limit the number of brokers on governing council of corporatised stock exchanges to 25%. The corporatised exchanges would be allowed to operate for profit.

The amendments include steep increase in penalties on offences to maximum of Rs 25 crore and the imprisonment for certain offences to 10 years.

The definition of securities is sought to expanded to include the unit of mutual funds. Sources close to the development said the amendments to the Act would also confer powers on the central government to grant immuity in certain cases. It is also proposed to amend the provisons of the SCRA to allow appeals to orders to Securities Appellate Tribunal to lie with the Supreme Court.

The cabinet today gave its approval for acceptance of inter-governmental agreement on Asian highways, and for becoming a party to the inter-governmental agreement on the Asian Highway network.

The highway will help the movement of traffic, improvement of trade and tourism among Asian countries. At present, the Asian highways network extends to 32 countries and its total length is more than 140,000 kms.