The Securities and Exchange Board of India and the
ministry of finance want stricter implementation of the
demutualisation norms in the exchanges and the major shareholders
in the National Stock Exchange may have to reduce their
holding in the exchange.
most important provision in the guidelines notified recently
by SEBI is that no investor or entity will be allowed
to hold more than 5 per cent in stock exchanges, along
with persons acting in concert.
is reliably learnt that Sebi has asked both the NSE and
the Over-the-Counter Exchange of India (OTCEI), set up
as demutualised exchanges in the early ''90s, to adhere
strictly to the guidelines. Highly placed Sebi sources
dealing with the issue also confirmed the move, saying,
"Letters in this respect have been sent to both the
Insurance Corporation of India holds 12.44 per cent, IDBI
(10.99 per cent), State Bank of India (10.94 per cent)
Stock Holding Corporation of India Ltd (7.11 per cent),
ICICI Bank Ltd (6.64 per cent) and Industrial Finance
Corporation of India (5.44 per cent) and may be asked
to pare their holdings.