STOCK EXCHANGES BE INFRA Cos

Capital markets regulator Sebi today said stock exchanges and depositories will be classified as infrastructure companies in order to effectively implement the provisions of listing norms for the bourses. The move comes close on the heels of Sebi approving new set of norms for the listing of stock exchanges. In a notification, the capital markets watchdog said that stock exchanges and depositories will be classified as infrastructure companies under Sebi Regulations. The new norms will come under the Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2016. Under the new regulations for the listing of stock exchanges, bourses would need to take steps for maintaining 51 per cent of shareholding under public category and ensuring that holding of trading members, associates or agents does not exceed 49 per cent. A mechanism would need to 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. The new norms provide that to ensure compliance that every shareholder be 'Fit and Proper', all applicants in the IPO or Offer For Sale will be required to make declaration to this effect at the time of making application.