NYSE cannot acquire BSE stake after buying NSE equity
16 Jan 2007
The New York Stock Exchange, which has picked up a 5 per cent stake in India's National Stock Exchange, cannot legally be a strategic investor in the Bombay Stock Exchange. Since the NYSE recently picked up a 5 per cent stake in the NSE, it cannot pick up a stake in the BSE, said a market watcher.
According to G Anantharaman, whole time member of the Securities & Exchange Board of India, "NYSE cannot pick up a stake in BSE as per the law as it has picked up a stake in NSE." He was speaking at the annual capital market conference organised by the Federation of Indian Chambers of Commerce & Industry yesterday.
According to SEBI's December 2006 guidelines, an individual or entity as well as persons acting in concert can hold up to five per cent of the total equity base in stock exchanges in India.