Sebi proposes easing of norms to set up more bourses

Mumbai: The Securities and Exchange Board of India( Sebi) on Wednesday proposed to create a liberalised ownership framework to allow new entrants to set up stock exchanges and depositories.

The proposed framework will allow higher shareholding at inception stage with dilution over a period of time.

“.. dominant trend shaping the exchange and depository landscape is the emergence of new technologies such as distributed ledger technology, artificial intelligence, machine learning etc. Several new fintech 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 (“Market Infrastructure Institutions”/ “MIIs”),” Sebi said in a discussion paper seeking public comments by February 5.


“A need is, therefore, being felt to forge a competitive landscape in MIIs’ 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,” Sebi said.

The regulator said a resident promoter setting up the MII may hold up to 100 per cent shareholding which should be brought down to not more than 51 per cent or 26 per cent in 10 years.

A foreign promoter from FATF( Financial Action Task Force) member jurisdictions setting up the MII may hold up to 49 per cent shareholding, which should be brought down to not more than either 26 per cent or 15 per cent in 10 years, Sebi said.