The rules on foreign ownership in ASX Ltd, according to Australian Financial Services Minister Bill Shorten, did not drop Singapore Exchange Ltd’s bid and they do not need any correction. This after the government decided to uphold a tax office ruling that gains from asset sales by private equity firms.

Referring to the 15 per cent cap on foreign investors of the country’s main exchange operator, ASX Ltd, Shorten said “I don’t see the case for changing it at this point. This whole issue of ownership comes down to the future of the ASX.”

Bloomberg reported that the government’s April 8 rejection of Singapore Exchange’s bid came as pressure increased on rival exchanges to attract global capital by consolidating.

Presently, Europe’s Deutsche Boerse AG and NYSE Euronext agreed to combine. London Stock Exchange Group Plc, on the other hand, said it would buy Canada’s TMX Group Inc.

It could be recalled that in April, Treasurer Wayne Swan said he was “open to the right deal” if it came along. Furthermore, he obliged the Council of Financial Regulators to examine ways to protect the integrity of the financial system should another bid arise.

“I don’t think the 15 percent foreign ownership issue is the reason why the ASX-SGX merger fell over. We have no objection in principle to mergers, but the deal has got to be a good deal,” Shorten said.