SEBI moves to allow trading of stock exchange shares

The Securities and Exchange Board of India (SEBI) has allowed stock exchanges to get their shares listed, subject to certain conditions, including allowing a public shareholding of 51 per cent stake in the exchange.

The SEBI board, which met today in Mumbai, decided to allow market infrastructure institutions (stock exchanges) to list themselves even as it allowed non-operational or derecognised stock exchanges to exit.

The decision follows recommendations of the report of a committee headed by former RBI governor Dr Bimal Jalan that reviewed the ownership and governance issues of stock markets and their associate institutions.

SEBI, while broadly accepting most of the recommendations of the committee, said the stock exchanges should have a minimum net worth of Rs100 crore and existing stock exchanges will be given three years to achieve this.

The minimum net worth for the clearing corporation and the depository will be Rs300 crore and Rs100 crore, respectively. All existing clearing corporations will be mandated to build up to the prescribed net worth of Rs300 crore over a period of three years from the date of notification.

Shareholding pattern
Stock exchanges will have diversified ownership and no single investor will be allowed to hold more than 5 per cent except the stock exchange, depository, insurance company, banking company or public financial institution, which may hold up to 15 per cent.