MUMBAI, Oct 22 (Reuters) - India's markets regulator on Thursday proposed allowing stock exchanges and depositories to invest in related businesses without seeking the regulator's prior approval for each transaction.
Here are more details:
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The Securities and Exchange Board of India, or SEBI, proposed that these entities can make investments linked to core market functions without seeking its approval
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The regulator also plans to scrap prior approval requirements for exchanges and depositories to invest in SEBI-mandated initiatives
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The plan would also waive prior SEBI approval for investments through subsidiaries using internally generated funds and for investments in entities regulated by other financial regulators
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Such investments would need to be overseen by these institutions' boards and subject to financial safeguards, according to the proposal
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The regulator has sought comments on its proposals till November 12
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Under current rules, even low-risk investments are subject to the same approval process as large strategic investments
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SEBI said that oversight should be aligned with actual risks and institutions should have greater operational flexibility
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The move could give exchanges and depositories - many of which are now publicly listed - greater flexibility to diversify revenue streams and pursue new business opportunities
Reporting by Jayshree P Upadhyay; Editing by Leroy Leo
Source: Reuters