SEBI vide press release dated 06.01.2021 has issued a discussion paper on Review of Ownership and Governance norms to facilitate new entrants to set up Stock Exchange / Depository. The new norms suggested for setting up Market Infrastructure Institutions include the following:
- Resident promoter setting up the MII may hold up to 100% share holding which shall be brought down to not more than (either 51% or 26%) in 10 years.
- A foreign promoter (from FATF member jurisdictions) setting up the MII may hold up to 49% shareholding(in terms of consolidated FDI Circular, 2020) which shall be brought down to not more than (either 26% or 15%) in 10 years.
- Foreign individuals / entities from other than FATF member jurisdictions, may acquire or hold up to 10% in a MII.
- Any person (domestic or foreign), other than the promoter, may acquire or hold less than 25% shareholding.
- At least 50% of ownership of the said MII, shall be represented by Individuals / Entities having experience (5 years or more) in areas of capital markets or technology related to financial services.
