SEBI increases equity holding limit in stock exchanges

SEBI increases equity holding limit in stock exchangesThe Securities & Exchange Board of India (Sebi) has recommended 15 per cent equity holding limit for strategic investors. The current share holding limit for the strategic investors in stock exchange is 5 per cent only. The investors such as stock exchanges, depositories, clearing corporations, banks and insurers can invest more in the Indian stock exchanges. The investment limit is not changed for the individuals and companies and it would continue at the rate of 5 percent.

The limit is increased following the demand of raising investment limit by certain quarters in the industry. Many industry players hailed this decision of the Securities & Exchange Board of India (Sebi) and said that it would attract more number of investors. The board has invited comments on its recommendations and set September 19, 2008 as dead line for receiving the proposals.

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