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The Securities and Exchange Board of India amends the eligibility and shareholding limits for clearing corporations operating in International Financial Services Centres. The amendment applies to recognized clearing corporations in International Financial Services Centres and their parent institutions. Any Indian recognized stock exchange, clearing corporation, or foreign recognized stock exchange or clearing corporation must form a subsidiary to provide clearing corporation services. Such founding entities must hold at least fifty-one percent of the paid-up equity share capital. Other persons may hold up to five percent of the paid-up equity share capital. Specific institutional categories may hold up to fifteen percent of the paid-up equity share capital. The entities must also comply with specified regulations of the Securities Contracts Regulations.
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[Image omitted. See the official document.] भारतीय प्रतिभूति और विनिमय बोर्ड Securities and Exchange Board of India
CIRCULAR
SEBI/HO/MRD2/DCAP/CIR/P/2020/149
August 07, 2020
All recognized Clearing Corporations in International Financial Services Centres (IFSC)
Dear Sir / Madam,
Subject: Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 - Amendment
Kindly refer to SEBI (IFSC) Guidelines, 2015 which were notified by SEBI on March 27, 2015 and SEBI Circular SEBI/HO/CIR/P/2017/85 dated July 27, 2017.
“4. 2A) Eligibility and shareholding limit for clearing corporations desirous of operating in IFSC
Any Indian recognized stock exchange or clearing corporation, or, any recognized stock exchange or clearing corporation of a foreign jurisdiction shall form a subsidiary to provide the services of clearing corporation in IFSC wherein at least fifty one per cent. of paid up equity share capital is held by such stock exchange or clearing corporation.
2B) The remaining share capital may be acquired or held by 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 clearing corporation in IFSC, subject to applicable law:
Provided further 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 such clearing corporation:
2C) For the purpose of clause 2A) and 2B) above, that the provisions of Regulation 19, 19A and 20 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 should be, mutatis mutandis, complied with”.
Yours faithfully,
Amit Tandon General Manager Market Regulation Department Email: amitt@sebi.gov.in
