Mumbai: Market regulator Sebi on June 21 notified new norms for ownership and governance of stock exchanges and other market infrastructure institutions — a move which, among others, could pave the way for setting up of new bourses and also permit the exchanges to get listed on other bourses.
As per the new norms, every recognized stock exchange shall have a minimum net worth of Rs. 100 crore at all times and at least 51 percent of stake has to be held by public.
Besides, no Indian entity, either individually or together with persons acting in concert, would be allowed to acquire or hold more than 5 percent stake directly or indirectly in a stock exchange.
However, stock exchanges, depositories, banks, insurance companies and public financial institutions from India can acquire or hold up to 15 percent stake.
The new norms are expected to pave the way for setting up of new stock exchanges. Currently, there are two national level bourses, BSE and NSE, in the country, while the third one, MCX-SX, is waiting for permission to begin trade in the equity segment. MCX-SX is currently permitted only in the currency segment.
The individual shareholding would be capped at 5 percent for all non-Indian entities without any exemptions, and their collective holding cannot exceed 49 percent. Out of this, the holding through FDI route would be capped at 26 percent and that through FII at 23 percent. No FII would be allowed to acquire shares of a recognized stock exchange otherwise than through secondary market.