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Kolkata, April 21 The market regulator SEBI last week clarified that definition of a “shareholder” of a de-mutualised bourse with trading rights would also include persons having “indirect” trading interest.

In a letter to the stock exchanges, SEBI has said “a shareholder having a trading interest ‘indirectly’ in relation to a person having trading rights, would be understood in the same manner as the term “associate” is in relation to a shareholder having trading rights under regulation 2(1)(b) of the Securities Contracts (Regulation) (Manner of increasing and maintaining public shareholding in recognised stock exchanges regulations, 2006.”

SEBI has made this clarification in the context of ensuring that the total holdings of all trading rights holders in a stock exchange do not go beyond 49 per cent.

According to Ms Deena Mehta, former president of the BSE, the regulator has attempted to plug the loopholes by including the “indirect” trading right holders. Husband or wife of a broker, sub-brokers or, in case of a broking firm, which is a corporate entity, those having not less than 15 per cent of the voting rights in such corporate bodies, are included in the definition of persons having “indirect” interest in the trading rights,” she explained.

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