- Following the crisis at National Spot Exchange (NSL), Forward Markets Commissions (FMC) tightened shareholding norms of commodity exchanges by announcing the following norms with immediate effect:
- A resident individual could not hold more than 5% stake in NSE.
- To ensure broader participation in community bourses, 51% shares of any commodity exchange should be held by the public.
- The percentage of shares held by a commodity exchange, stock exchange, depository, bank, insurance company or public financial institution in an bourse has been lowered to 15 % from the earlier 26%.
- Any shareholding in excess of the specified norms will have to be lowered to the threshold level within five years.
- Foreign investors cannot have more than 5% stake and cannot have any representation on the governing board of a commodity exchange.
- The combined holdlings of abroad residents has been restricted to 49%.
- Read at: http://www.thehindu.com/todays-paper/tp-business/fmc-tightens-commodity-exchange-investment-norms/article5984094.ece
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