PTI | 10:04 PM,Apr 02,2012

Mumbai, Apr 2 (PTI) Capital market regulator SEBI today
cleared the decks for listing of bourses and made it mandatory
for them have 51 per cent public holding, but banned brokers
from boards.
It also capped individual holding at 5 per cent and fixed
their minimum networth of bourses at Rs 100 crore. Besides,
restrictions have also been placed on salaries of key
management.
Allowing listing of bourses was decided after considering
the much-debated Bimal Jalan Committee recommendations which
had not favoured listing of stock exchanges.
Significantly, Sebi said an exchange cannot be listed on
itself, which means if the BSE were to go public, it has to do
so on the NSE or another exchange and vice versa.
“The stock exchanges will have diversified ownership and
no single investor will be allowed to hold more than 5 per
cent except the stock exchange, depositories, insurance
company, banks or public financial institutions which may hold
up to 15 per cent,” Sebi said after the board meeting.
“The Board of the stock exchanges/clearing corporations
will not have any trading member/clearing member
representative. However, an advisory committee shall be
constituted by the Board, comprising trading members/ clearing
members to take benefit of experience of such members.”
Broking community slammed the Sebi decision on salaries
and banning brokers from the ownership of exchanges.
“We are kept out of the boards, which is not good. The
worst part of the decision is that bourses will not have
professionals as salary has been capped,” said a broker.
While the premier exchange BSE refused to comment, the
largest bourse NSE in an official statement said, “It is a
welcome and significant development, of considerable
importance to the market infrastructure institutions. MORE