The Securities and Exchange Board of India vide its notification dated 9th July 2020 has revised the eligibility and shareholding limit for stock exchanges desirous of operating in International Financial Services Centers to streamline operations at IFSCs.
As per the revised guidelines, any Indian or foreign stock exchange may form a subsidiary to provide the services of the stock exchange in IFSC, wherein at least 51% of paid-up equity share capital is held by such exchange and remaining share capital may be offered to any other person (whether Indian or of foreign jurisdiction). Also, such person will not at any time, directly or indirectly, either individually or together with persons acting in concert (PAC), acquire or hold over 5 % in the exchange, subject to applicable laws.
Provided that the stock exchanges, depositories, banking company, insurance company, etc. may acquire or hold 15% of the paid-up equity share capital of a recognized stock exchange with prior approval of the Board.
Click here to read the notification.
