SEBI panel suggests wider ownership of bourses
23 Nov 2010
A committee headed by former governor of the Reserve Bank of India (RBI) Bimal Jalan has suggested a more even distribution of the ownership for better functioning of stock exchanges.
The committee, however, noted the need and role of anchor investor in setting up market infrastructure institutions like the stock exchange.
The committee, set up by the Securities and Exchange Board of India (SEBI), has suggested a 49-per cent ceiling on the total holdings of promoter or anchor investors in the bourse.
Promoter or anchor investor may also include public financial institutions and banks, the committee suggested.
The committee has suggested a 24-per cent holding limit for individual promoters or anchor investors in a stock exchange. This includes the stake or stakes of person or persons acting in consort.
However, the anchor investor holding up to 24-per cent stake in a bourse would be gradually brought down to 15 per cent within 10 years, the report said, adding that after expiry of the 10-year period when the anchor investors represents the board of the stock exchange, he or she will remain only an ordinary investor there.