SEBI Board Meeting 2021 Today: Decision on bringing new bourses, depositories and 100% ownership in exchanges on agenda - check all details here

The Securities Exchange Board of India (SEBI) is all set to conduct its Board meeting today, June 29. It is expected that the capital market regulator will take a call on allowing new players to open new exchanges and depositories. There will also be discussion regarding 100 per cent ownership of exchanges. The move will facilitate opening exchange, depository and CCL. Currently, an individual can hold maximum up to 5 per cent, while an institution stake can go up to 15 per cent.  

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Also, In case of an existing exchange or a depository, any promoter may even acquire up to 100%. It has been proposed that the stake will be cut down to 51 per cent or 26 per cent after 10 years. If a foreign investor is Financial Action Task Force (FATF) compliant, the investment cap would be 49 per cent.  

However, for an acquisition of more than 25% stake, prior Sebi approval will be required. Also, they will have to seek permission from the regulator in case of merger and acquisition and also for buying stake above 10 per cent.  

Also, as per the SEBI proposal besides public interest director, there will be shareholder director too.  Under the framework, in case of company's former employees, there will be mandatory cooling period of three years. In case of removal from a post, double voting and minority voting will also play important part. For appointment of an independent director, their skill, time commitment will be taken into account. It has been proposed to include two third independent director in the nomination committee.