Govt to hike FDI limit in stock exchanges to 15 pc

The government today said foreign entities would be allowed to own up to 15 per cent stake in domestic stock exchanges, a move that would help boost their global competitiveness.
The decision announced in the 2016-17 Budget speech by Finance Minister Arun Jaitley also comes against the backdrop of demand from various stakeholders who have been seeking higher foreign direct investment (FDI) in stock bourses.
"Investment limit for foreign entities in Indian stock exchanges will be enhanced from 5 per cent to 15 per cent on par with domestic institutions," Jaitley said.
"This will enhance global competitiveness of Indian stock exchanges and accelerate adoption of best-in-class technology and global market practices."

The finance minister announced FDI policy reforms in insurance, pension, asset reconstruction companies and stock exchanges.
Meanwhile, in November last year, capital markets regulator Sebi approved a new set of revised regulations for listing of domestic stock exchanges.

Those norms were aimed to put in place necessary safeguards and procedures with respect to shareholding norms, fit-and-proper criteria and other issues of conflict of interest.
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Leading bourse BSE has hailed the Budget proposal to raise foreign holding in stock exchanges to 15 per cent, and has ruled out any hit to trade volumes owing to a hike in stock transaction tax on options.

The decision comes against the backdrop of demand from various stakeholders including exchanges to hike the FDI limit on bourses.
"We need to see the fine print. But on the face of it, the move to allow FPI to increase their stake in exchange by threefold to 15 per cent is very welcome, as this will take our exchanges to global levels," BSE Managing Director and Chief Executive Ashish Kumar Chauhan told