Sebi Issues New Listing Norms for Stock Exchanges

MUMBAI: The wait’s finally over for bourses BSE and NSE to get listed, with the capital markets watchdog Sebi issuing stock exchange listing guidelines on Friday.

Titled ‘Procedures for ensuring compliance with Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 (SECC Regulations)’ Sebi in a circular issued detailed compliance norms for disclosure and listing regulations including ensuring ‘fit and proper’ status of investors in the bourses.

The idea was first mooted in 2010. Since then, BSE has been seeking to get listed, but couldn’t do so due to lack of regulatory clearances. It was only last November that Sebi had approved the revised IPO norms to list bourses -- a move opposed by the Bimal Jalan Committee in 2010.

The new norms, finalised after taking into account the representations received for listing of stock exchanges, aim to put in place necessary safeguards and procedures with respect to shareholding norms, fit and proper criteria, and other issues of conflict of interest.

The exchanges would need to take steps for maintaining of 51 per cent of shareholding of Public Category and ensuring that holding of trading members, associates or agents does not exceed 49 per cent.

Sebi’s said the listed exchange will have to disseminate the details of its shareholding with category-wise breakup on a continuous basis, on its website. Similarly, the bourse where shares are listed, shall also display the information.

Besides, depositories will have to put in place systems for capturing the shareholding data of trading members or their associates and agents and ensure that there is a mechanism for coordination between the depositories towards sharing of information. “The depositories shall put in place a mechanism to ensure that no shareholder of listed stock exchange gets credit of shares beyond 5 per cent or 15 per cent, as applicable,” the regulator said in a circular.

A mechanism would be put in place providing for approval of the listed stock exchange as and when holding of trading members/associates/agents reaches 45 per cent.

In case they purchase shares without requisite approval, the depositories will initiate consequential action such as freezing of voting rights and all corporate benefits in respect of such stake till the time the same is divested. The divestment of any excess shareholding beyond the specified limit would be through a special window provided by the stock exchange.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com