SEBI notifies shareholding norms for exchanges

The Securities and Exchange Board of India (SEBI) on Thursday notified new norms for ownership and governance of stock exchanges and other market infrastructure institutions including at least 51% stake holding by public and a minimum networth of Rs 100 crore.

The Securities and Exchange Board of India (SEBI) on Thursday notified new norms for ownership and governance of stock exchanges and other market infrastructure institutions including at least 51% stake holding by public and a minimum networth of Rs 100 crore.

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No Indian entity, either individually or together with persons acting in concert, would be allowed to acquire or hold more than 5% directly or indirectly in a stock exchange, SEBI said.

However, stock exchanges, depositories, banks, insurance companies and public financial institutions from India can acquire or hold up to 15% stake.

Individual shareholding would be capped at 5% for all non-Indian entities without any exemptions, and their collective holding cannot exceed 49%. Out of this, the holding through the foreign direct investment (FDI) route would be capped at 26% and that through foreign institutional investors (FIIs) at 23%. No FII would be allowed to acquire shares of a recognised stock exchange otherwise than through the secondary market.