SEBI may tighten shareholding, net worth norms for exchanges: Report

The Securities and Exchanges Board of India (SEBI) may tighten net worth norms, bring in new shareholding rules and ease directorship conditions for stock exchanges, depositories and clearing corporations.

A Mint report stated that a five-member panel headed by R Gandhi, a former Deputy Governor of the Reserve Bank of India (RBI), is considering these proposals.

Sources told the paper that the panel, which was set up in October, is considering doubling the net worth requirement for stock exchanges and clearing corporations to strengthen infrastructure for dealing with crises such as the Rs5,500 crore settlement issue at National Spot Exchange Ltd.

As of now, stock exchanges are required to have a net worth and clearing corporations of Rs100 crore and Rs 300 crore, respectively. However, experts told the newspaper that this amount may not be enough for emergencies.

Sandeep Parekh, founder and CEO of Finsec Law Advisors, a law firm, told Mint, since the primary risk management takes place at the clearing corporation, the current net worth amount is "too small to make any impact on safety."

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