Market regulator Securities and Exchange Board of India (SEBI), on Wednesday, allowed Limited Liability Partnerships (LLPs), a hybrid between a partnership firm and company, to get membership of stock exchanges in the country.

LLP is a corporate business vehicle that provides benefits of limited liability to its partners such that one partner is not responsible for another partner’s misconduct or negligence.

“A limited liability partnership...shall also be eligible to be elected as a member of stock exchange,” SEBI said in a notification. As per the norms, only those LLPs would be eligible for membership on the bourses that have complied with the financial requirements, and its designated partners are not disqualified from being members of stock exchanges.

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