The Bermuda Stock Exchange should have all of its locally listed companies exempt from the 60/40 ownership rules, according to William Woods, chief executive officer of the BSX.

This would include not only the three banks, but also Bermuda Bakery, Kentucky Fried Chicken, Argus, BF&M, Bermuda Press Holdings -- owners of The Royal Gazette , Island Holdings -- owners of Bermuda Sun, Bermuda Aviation Services, Bermuda Broadcasting, Watlington Waterworks, Bermuda Container Line, Stevedoring Services, BELCO, KeyTech, as well as Masters, Long Botham Boats, and Devonshire Industries.

Mr. Woods added companies that wanted to keep ownership rules should be allowed to do so.

"There has also been a suggestion that any company that is public, ie not privately owned, on the Bermuda Stock Exchange should be exempt from 60/40 and we would support that.'' At the moment companies on the BSX have to make sure that they do not sell more than 40 percent of their stock to non-Bermudians.

This requires detailed book keeping of whether shareholders are Bermudian or non-Bermudian and could potentially restrict sales on the BSX if there are not enough shares available for non-Bermudians.

Mr. Woods was speaking after Minister of Finance Eugene Cox announced on Friday in the House of Assembly that the 6 0/40 ownership regulations would be relaxed by Government.

Mr. Woods added: "Companies that want to go public and raise capital from the public, shouldn't be subject to 60/40.'' He added: "Clearly those companies that wanted to retain a restriction could do so in their own constitution. There is nothing to stop a company saying we don't want to have more than 20 percent foreign ownership and building that into their by-laws and so on and if they want to do that we allow them to do that, we support that.'' But he said it would help the BSX operate more like other exchanges and stop companies having to do cumbersome paperwork on the nationality of stock holders every time a sale is made.

60/40 exemption In the next six to eight months Mr. Woods said that the matter would be simplified when a new system would be installed which will automatically register the number of available shares for non-Bermudians.

Mr. Woods said: "It would make a lot of logical sense that companies in Bermuda that chose to be public would not be subject to 6 0/40 laws by compulsion, but more by choice.

"In opening themselves up they obviously have demonstrated a need for capital and in doing so why should they be restricted in going forward in where they raise that capital.'' At the moment the BSX listed company's registrar has to monitor every shareholder. An "amber light'' is signalled when a company has 30 percent non-Bermudian ownership and each trade is vetted to make sure it complies with the regulations.

BSX CEO William Woods: `Companies that want to go public and raise capital from the public, shouldn't be subject to 60/40'.