The government will take a final decision on foreign
direct investment (FDI) in stock exchanges within the
next 10 days. The policy would make it clear if bourses
can invite FDI while divesting brokers' equity in them
to below 49 per cent in line with Sebi guidelines on
demutualisation, finance ministry sources said.
need for an FDI policy on stock exchanges was felt after
the corporatisation of bourses. Earlier, most stock
exchanges were not companies but associations of persons
as traders held equity in the bourses. Since the government
has now made it mandatory for all the bourses to corporatise
and demutualise, an FDI policy has become inevitable,
the officials said.
move should also be seen in the light of NASDAQ expressing
keenness to pick up a stake in the Bombay Stock Exchange
finance ministry had already held two rounds of discussion
with RBI officials, including governor Y V Reddy. The
ministry is planning another round of talks with Sebi
chairman M Damodaran in
the next 2-3 days, the officials said.
the finance ministry will give inputs, the commerce
ministry will frame the FDI policy and government expects
to finalise the policy on FDI in bourses within the
next 10 days.