The Financial Conduct Authority, a UK based regulator, has said created a new law in order to protect the minority investors in London-listed companies.

Under the new rules, the Financial Conduct Authority said that businesses with controlling shareholders, which is 30 per cent or more of all shares, will now have to ensure that the company is run independently in order to be able to hold on to their shareholdings. The new rules were made following some cases involving companies whose shareholders were dominated by the founders.

Roger Barker, of the Institute of Directors, said, "Some of the world's most successful firms - Microsoft, Amazon, Google and BMW - have large, individual shareholders. It remains to be seen whether, by singling out one type of company ownership for extra rules, the FCA will discourage these companies from listing in London."

The City regulator, FCA has created the new rules to avoid repeat of the stock market scandals including companies like ENRC and Bumi by providing more power to the minority shareholders. The regulator is also planning to give shareholders in large UK-listed companies additional voting rights and more influence in voting decisions.