Demutualization-now a widespread global phenomenon-is looked to as a means of meeting developmental and competitive challenges and even to address failure to carry out credible operations. Although the state of demutualization of stock exchanges appears to be in transition-with few exchanges fully demutualized-it seems clear that the trend will not be reversed. As exchanges move forward toward full demutualization, the regulatory role of the exchanges becomes more difficult and yet the advantages of self-regulation are not easily discarded. New issues will arise as a result of demutualization including direct investor access to exchanges, global alliances, and cross-border ownership. Nevertheless, there are immense scope for the market to benefit from demutualization provided there is proper product diversification and technological advancement.