Wednesday, January 27, 2021

SEBI proposes easing of norms to set up more bourses

- Advertisement -

Sebi to empanel securities market trainers for investor education initiativeNew Delhi, Jan 6 (IANS) The Securities and Exchange Board of India (SEBI) has proposed amendments in the regulations to ease the setting up of stock exchanges and depositories in the country.

In a statement, SEBI noted that the Indian securities market has witnessed dominance in trading and depository space, raising concerns on possibility of excessive concentration and institutional tardiness in quickly responding to the changing market dynamics which may have an adverse bearing on efficiency in trading, record-keeping, supervision and risk management practices.

It also said that several new fintech and techfin players have emerged in trading space in various jurisdictions, who are increasingly deploying these disruptive technologies and challenging the traditional functioning of stock exchanges and depositories.

“A need is, therefore, being felt to forge a competitive landscape in MIIs’ (Market Infrastructure Institutions) space by facilitating new players, who may like to challenge other MIIs in their already established domain, to set up MIIs or merger/ acquisition of the existing entities,” the SEBI statement said.

READ ALSO:  Revenue impact from trade agreements increased by 35 per cent: Report

Noting that the current framework appears to restrain the entry of new players or acquisition of existing entities, the capital market regulator said: “It is, therefore, proposed to create a liberalised ownership framework by allowing higher shareholding at initial/inception stage with dilution over a period of time.”

As per the consultation paper, SEBI has proposed that resident promoter setting up the MII may hold up to 100 per cent shareholding which shall be brought down to not more than — either 51 per cent or 26 per cent — in 10 years.

“A foreign promoter (from FATF member jurisdictions) setting up the MII may hold up to 49 per cent shareholding (in terms of consolidated FDI Circular, 2020) which shall be brought down to not more than (either 26 per cent or 15 per cent) in 10 years,” it said.

READ ALSO:  New-age insurance, green energy stocks in queue for Nifty50 entry
READ ALSO:  Aviation Ministry reviews progress on Air India sale

Foreign individuals or entities from other than FATF member jurisdictions, may acquire or hold up to 10 per cent in an MII, SEBI proposed. Further, as per the consulation paper, any person, domestic or foreign, other than the promoter, may acquire or hold less than 25 per cent shareholding.

At least 50 per cent of ownership of the said exchange or depository, shall be represented by individuals or entities having experience (5 years or more) in areas of capital markets or technology related to financial services, it added.

Source: IANS

India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News


Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India

Delhi Police caught off guard by breach of trust by protesters?

New Delhi, Jan 26 (IANS) When the Delhi police entered into an agreement with the protesting farmers, little did they realise there were chances...

How the situation turned ugly at Red Fort

New Delhi, Jan 26 (IANS) The farmers movement that had been peaceful for the last two months turned violent on Republic Day on Tuesday...

Anyone who wants Covid vaccine could get it ‘this Spring’: Biden

By Nikhila Natarajan (IANS) US President Joe Biden's underpromise-overdeliver strategy on Covid-19 vaccine allocation landed its most optimistic message yet, pointing to vaccination for...

SKM asks farmers to return to borders, continue peaceful protest

New Delhi, Jan 26 (IANS): After violent clashes with between the police and the protesting farmers in the national capital on Tuesday, the Samyukt Kisan...