Demutualization:
1. is a process through which any member-owned organisation becomes a shareholder-owned company
2. relates to the stock exchanges as well as the insurance companies
Choose the correct option from the codes given below:

Answer: [C] Both 1 & 2

Demutualisation is the process through which any member-owned organisation becomes a shareholder-owned company. this company could either be listed on a stock exchange or closely held by its shareholders. Originally, the term applied specifically to insurance companies converting into shareholder-owned entities from being mutually owned by policy holders.  In India, demutualisation relates more to the stock exchanges than to insurance companies.

This question is a part of GKToday's Integrated IAS General Studies Module