CII Naoroji Godrej Centre of Manufacturing Excellence




News and Update

FDI LIMIT IN BOURSES UP AT 15 PER CENT IN BOOST FOR IPO PLANS

01 Mar 2016

MUMBAI: Foreign entities will now be able to own up to 15% stake in domestic stock exchanges.

This will ensure better prospects for initial public offers (IPO) of stock exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange.

At present, no single foreign entity can hold more than 5% in domestic exchanges.

Budget 2016: Government to hike FDI limit in stock exchanges to 15 per cent

"This will help attract more investments in India by creating stronger links with the best foreign exchanges,"said Ashishkumar Chauhan, CEO of BSE. "This is expected to improve the functioning of Indian stock exchanges."

Singapore Stock Exchange and Deutsche Boerse each hold 5% in BSE and are said to be keen to raise their stakes to 15%.

Trading members hold about 49% in BSE and the remaining 51% is held by institutional investors, including foreign funds and domestic institutions.

The top foreign shareholders include Gagil FDI Ltd (Cyprus), GS Strategic Investments Ltd, SAIF II SE Investments Mauritius Ltd and Aranda Investments (Mauritius) Pte Ltd. They all hold 5% each.

(Source: The Economic Times)


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