The Securities Exchange Board of India through notification dated 13th August, 2021 has issued the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Second Amendment) Regulations, 2021. As per the regulation, every recognized stock exchange shall ensure that all its shareholders are fit and proper persons. The persons who hold less than 2% share or voting right are exempted from this requirement.
This exemption was applicable only to listed recognized stock exchanges. The amendment has extended the exemption to all recognized stock exchanges. The amendment has also omitted the requirement for any person who acquires equity shares or voting rights, in a recognized stock exchange or recognized clearing corporation to exercise any voting rights in the range of two percent to five percent, shall seek approval of the Board within fifteen days of such acquisition.
