The Securities and Exchange Board of India vide its notification dated 7th August 2020, in order to further streamline the operations at IFSC, based on consultations held with the stakeholders, has decided to amend clause 4 (2) of Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015.
The Amendment brings in new Clause 4(2A) which deals with the Eligibility and shareholding limit for clearing corporations desirous of operating in IFSC in which 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 a clearing corporation in IFSC wherein at least 51% of paid-up equity share capital is held by such stock exchange or clearing corporation.
Under clause 4(2b) the remaining share capital may be acquired or held by any other person 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 5% of the paid-up equity share capital in a recognized clearing corporation in IFSC.
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