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The Securities and Exchange Board of India amends clause 4 (1) of the Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015. The amendment alters the eligibility and shareholding limits for stock exchanges operating in International Financial Services Centres. Any Indian recognized stock exchange or foreign stock exchange may form a subsidiary to provide stock exchange services in the International Financial Services Centre. The parent stock exchange must hold at least fifty one per cent of the paid up equity share capital. Other persons may hold up to five per cent of the paid up equity share capital. Specific institutional entities may acquire up to fifteen per cent of the paid up equity share capital with prior approval from the Board.
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भारतीय प्रतिभूति और विनिमय बोर्ड Securities and Exchange Board of India
CIRCULAR
SEBI/HO/IFSC/CIR/P/2020/117
July 9, 2020
Dear Sir / Madam,
Subject: Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 - Amendments
Kindly refer to SEBI (IFSC) Guidelines, 2015 which were notified by SEBI on March 27, 2015 and SEBI Circular dated July 27, 2017.
"4. 1) Eligibility and shareholding limit for stock exchange desirous of operating in IFSC
Any Indian recognized stock exchange or any stock exchange of a foreign jurisdiction may form a subsidiary to provide the services of stock exchange in IFSC wherein at least fifty one per cent. of paid up equity share capital is held by such stock exchange and remaining share capital may be offered to any other person (whether Indian or of foreign jurisdiction) and such person shall not at any time, directly or indirectly, either individually or together with persons acting in concert, acquire or hold more than five per cent of the paid up equity share capital in a recognised stock exchange in IFSC, subject to applicable law.
Provided that,—
may acquire or hold, either directly or indirectly, either individually or together with persons acting in concert, upto fifteen per cent of the paid up equity share capital of a recognised stock exchange with prior approval of the Board.
Provided further that the provisions of Regulation 19 and 20 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 should be complied with".
Yours faithfully,
Sanjay Purao General Manager Market Regulation Department Email: sanjayp@sebi.gov.in
