Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 - Amendments
Summary
This circular amends clause 4(1) of the SEBI (IFSC) Guidelines, 2015 to update eligibility and shareholding limits for stock exchanges operating in International Financial Services Centres. It permits Indian or foreign stock exchanges to form subsidiaries where at least 51% of equity is held by the exchange, while capping individual non-exempt holdings at 5%. Specific entities such as depositories, banks, and insurance companies are allowed to hold up to 15% with prior Board approval.
Text
It has been decided to amend clause 4 (1) of SEBI (IFSC) Guidelines, 2015 to read as follows: '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... and such person shall not at any time... acquire or hold more than five per cent of the paid up equity share capital...
Provided that,— (a) a stock exchange, (b) a depository, (c) a banking company, (d) an insurance company, (e) a commodity derivatives exchange... (g) a public financial institution... and (h) a bilateral or multilateral financial institution approved by the Central Government, may acquire or hold... 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
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015 - Amendments. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.