Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Amendment Regulations, 2024

SEBI on August 29, 2024 has issued the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Amendment Regulations, 2024. An applicant seeking recognition as a stock exchange or clearing corporation shall comply with the following conditions, namely:—

1. The applicant is a company limited by shares;
2. The applicant is demutualized;
3. The applicant, its directors and its shareholders who hold or intend to hold shares, are fit and proper persons
4. The applicant satisfies the requirements relating to the ownership and governance structure specified in these regulations;
5. The applicant satisfies the net worth requirements specified in these regulations;
6. The applicant satisfies the requisite capability including its financial capacity, functional expertise and infrastructure.
7. The applicant has the necessary infrastructure for the orderly execution of trades;
8. The applicant has an online screen-based trading system;
9. The applicant has an online surveillance capability which monitors positions, prices and volumes in real time so as to ensure market integrity;
10. The applicant has adequate infrastructure to list securities for trading on its platform, wherever applicable;
11. The applicant has necessary capability to have a nationwide network of trading members and has adequate facility to admit and regulate its members;
12. The applicant has made necessary arrangements to establish connectivity with its trading members and clearing corporation;
13. The applicant has adequate Investor Protection Fund and Investor Services Fund;
14. The applicant has adequate investor grievances redressal mechanism and arbitration mechanism to resolve disputes arising out of trades and its settlement;
15. The applicant has the facility to disseminate information about trades, quantities and quotes in real time to at least two information vending networks which are accessible to investors in the country
16. The applicant has adequate systems’ capacity supported by a business continuity plan including a disaster recovery site;
17. The applicant has in its employment, sufficient number of persons having adequate professional and other relevant experience;
18. The business feasibility plan has been appraised by a reputed agency having expertise in securities market.