The Government on Wednesday acknowledged regulatory issues in listing of stock exchanges, saying the matter is under consideration. “The issue of listing of stock exchanges is under consideration. There are some regulatory issues in the listing of stock exchanges,” Minister of State for Finance Jayant Sinha said at an event. It has been over three years since Sebi notified new rules permitting listing of stock exchanges.
In April 2012, the regulator had said 51 per cent of bourses could be held with the public. The decision considered the much-debated Bimal Jalan panel recommendations, which have not favoured listing of stock exchanges.
“Stock exchanges will have diversified ownership, and no single investor will be allowed to hold more than 5 per cent except the stock exchange, depository, insurance company, banking company or public financial institution, which may hold up to 15 per cent,” Sebi had said.
“51 per cent of the holding of stock exchanges will be held by the public.” There are some riders though. Bourses may be permitted to list when they put in place an appropriate mechanism for tackling conflicts of interest, it had said, adding that they will not be allowed to list on themselves.