SEBI RULES CLOUD BSE STAKE SALE

The Securities and Exchange Board of India (SEBI) recently issued guidelines for divestment of shareholding in stock exchanges, where it barred individuals to directly or indirectly acquiring or hold more than 5 per cent in an exchange.The Public shareholding should remain not less than 51 per cent at all times. The move to limit individual stake at 5% is likely to delay the proposed plan by BSE
to sell 26% equity to a strategic investor. The deadline for selling 26% stake comes to an end in December 31st, 2006. Stock exchanges were asked to dematerialise their equity shares proposed to be
issued or sold.