In a remarkable move Securities and Exchange Board of India (SEBI) has allowed domestic stock exchanges to list subject to certain conditions. It is pertinent to note that NSE is partly owned by Singapore’s Temasek, while Deutsche Boerse, Singapore Exchange and US billionaire George Soros holding small stakes in BSE.
- 51 percent of each exchange is held by the public.
- Listing by Indian stock exchanges, would have to wait for a minimum of three years from the time of SEBI’s final approval.
- Stock market operators (minimum networth of Rs 100 crore) would not be allowed to list on their own stock exchanges.
- Clearing corporations for the exchanges would need minimal capital of Rs 300 crore, while depository bodies would need a minimum of Rs 100 crore
- No single investor would be allowed to hold more than 5 percent in the exchange. However, the stock exchange and certain financial institutions including insurance and banking companies would be allowed to hold up to 15 percent.
It needs to be seen whether the listing of local stock bourses or exchanges can give a new lease of life to the regional exchanges which are on the verge of slow death and have become safe heavens for dabba trading in India.