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Market regulator SEBI is expected to finalise norms for broadbased ownership of stock exchanges and depositories, and bring in new players at its upcoming board meeting on June 29.
According to sources, the market regulator had discussed the matter in the previous board meeting and had postponed a decision back then.
“The issue of bringing in new exchanges has been pending for a while now. At least now, ahead of the NSE’s initial public offer, SEBI is thinking liberally,” the source said.
Discussion paper
In January, SEBI had floated a discussion paper in which it had proposed that any resident individual/domestic institution (resident-owned and controlled) can set up a market infrastructure institution such as a stock exchange or a depository with 100 per cent control, provided it is a public limited company.
Earlier, individuals (resident or foreign), either directly or indirectly, either individually or together, could not hold more than 5 per cent in a stock exchange or a depository.
Earlier, the Bimal Jalan committee was set up to suggest norms for new exchanges a decade ago. However, no new exchanges have come up for the past 10 years. In fact, about 17 bourses including 15 regional exchanges have shut shop.
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