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Current Affairs PDF June 2012 Page 38WHAT ARE GOVERNMENT BONDS OR GOVERNMENT SECURITIES?Government bonds are the bonds issued by the Government of a country in its own currency.The bond helps the government to raise money which is used to finance various activities likebuilding roads, hospitals, infrastructure etc. Hence, the government bonds are a kind of loanagainst which the government of a country receives a certain amount of money, for a certainamount of time, on a certain interest rate.CAPITAL MARKETS REGULATOR SEBI NOTIFIED NORMS FOR LISTING OFSTOCK EXCHANGECapital markets regulator Securities and Exchange Board of India(SEBI) on 21 June 2012 notified new rules for ownership andgovernance of stock exchanges to encourage the setting up ofnew bourses and enable exchanges to get listed. Theamendments were announced following the legal tussle betweenthe regulator and MCX Stock Exchange, which had earlier soughtapproval to start an equity platform.The new norms require the recognised stock exchange to have a minimum net worth of Rs 100crore at all times and at least 51 per cent of stake has to be held by public. The ownership of asingle investor was capped at 5% with an exemption for stock exchanges, depositories,insurance and banking companies and public financial institutions, which has been permitted tohold up to 15 per cent. The shareholders who hold stake in excess of the new limits would haveto comply with new norms within a period to be decided by SEBI and such period could be of upto three years.SEBI also specified that direct and indirect exposure to any stock exchange will be consideredwhile calculating the prescribed shareholding limit. The new rules permits stock exchanges tolist on any recognised stock exchange other than itselfand its associated stock exchanges, within three yearsof commencing operations. It was highlighted that for astock exchange that is not listed, an FII may acquireshares through transactions outside of a recognisedstock exchange provided it is not an initial allotment ofshares. For listed bourses, the FIIs can transact throughManner of Increasing andMaintaining PublicShareholding (MIMPS)the exchange where the shares are listed. The market regulator had earlier in April 2012approved changes to the Manner of Increasing and Maintaining Public Shareholding (MIMPS) inrecognised stock exchanges at a board meeting.SEBI is currently in the process of formulating minimum listing standards for listing ofcompanies on stock exchanges. A Conflicts Resolution Committee or CRC will be formed by SEBIwith a majority of external and independent members to deal with all issues concerningconflicts of interest with respect to listing of companies. The CRC will first consider matters ofwww.jagranjosh.comPage38Current Affairs PDF June 2012