.jpg)
The SEBI Board met today and took the following decisions:
A. SME Exchange
In recognition of the need for making finance available to needy small and medium enterprises, the Board decided to encourage promotion of dedicated exchanges and/or dedicated platforms of the exchanges for listing and trading of securities issued by SMEs. Multiple exchanges or platforms would provide the necessary competition in this space. SEBI will come out with a suitable framework for recognition and supervision of such exchanges/platforms. The enterprises with a post issue paid up capital of upto Rs. 25 crore would be listed on such exchanges / platforms and trading lot would be Rs. 1 lakh.
B. Shareholding in Stock Exchanges
Currently a person, along with persons acting in concert, can hold up to 5% of shares in a recognized stock exchange. In order to encourage competition in the exchange space, the Board decided to enhance this limit from 5% to 15% in respect of six categories of shareholders, namely, public financial institutions, stock exchanges, depositories, clearing corporations, banks and insurance companies.
C. FII Regime
The Board felt that the framework governing the participation of foreign institutional investors in Indian securities markets needs a comprehensive review. Accordingly, it decided to put out a detailed consultative paper on this for comments from the public. However, it undertook a limited review of the FII regime in respect of overseas derivative instruments, popularly known as PNs. This review was due in terms of the decision that was taken along with the decision taken in October 2007. It decided to do away with restrictions on issue of PNs by FIIs against securities, including derivatives, as underlying. The Board also reviewed the position with regard to registration of FIIs and sub-accounts in the last one year; 397 FIIs and 1160 sub-accounts have been registered since 31st October 2007.
