The Sebi board, which met in Mumbai, also decided to wait for the government to take a final decision on the issue of foreign institutional investment/foreign direct investment in stock exchanges.
However, it has decided to cap institutional investment in stock exchanges at 5 per cent, either in consortium or as a single entity. Up to 1 per cent, there will be no restriction for institutional investments, according to the discussion.
"Beyond 1 per cent and up to 5 per cent, the proposals will be approved under the guidelines of Sebi," a source said.
"The board will come out with appropriate norms for divestment of brokers' stakes in stock exchanges," a board member said, when contacted.
According to the demutualisation report, every stock exchange can divest either by going for a strategic investment, public offer or private placement of shares or preferential allotment or a combination of these.
The Bombay Stock Exchange has intimated its intention to bring down its broker-members' stake to 49 per cent by selling 26 per cent to a strategic investor and 25 per cent through a public offer of shares.
