06 September 2008

5% cap on stock exchanges sought to be enhanced

SEBI has put out a discussion paper, seeking public comments, to permit increase of one person's stake in a recognised stock exchange from a 5% cap to 15% cap, so long it is one of the specified institutional investors. While it is a step in the right direction, the quantum of the reform is grossly inadequate to revive the fortunes of the Bombay Stock Exchange. See my previous posts on the issue on 9 Aug , 10 Aug and 26 Aug.

As one comment on the blog pointed out wisely: "one must try to cure the person when he is alive and not after he is dead."

1 comment:

V Raghavendra Prasad said...

the perspective is in right direction. However,concept of demutualisation shall continue to find its true spirit.