SEBI has restricted investors from holding more than a 5 % stake in stock exchanges reports, CNBC-TV18.
Market experts say that this means that FIIs may not be able to hold more than 5 % in the exchanges via the FII route. They also say, SEBI's regulations do not give clarity on the most 'contentious' issue-that of foreign direct investment in exchanges.
The regulator has clarified that at least 51 % of the equity has to be held by the public; either through a public issue or via private placement. This notification is good news for the BSE , which has been waiting for SEBI guidelines to go ahead with its corporatisation and demutualisation.
Market experts say that this means that FIIs may not be able to hold more than 5 % in the exchanges via the FII route. They also say, SEBI's regulations do not give clarity on the most 'contentious' issue-that of foreign direct investment in exchanges. 
