The Securities and Exchange Board of India (SEBI) on August 07, 2020 has issued a circular to amend the SEBI (International Financial Service Centres) Guidelines, 2015.
The followings are the amendments made under the SEBI (International Financial Service Centres) Guidelines, 2015:
• New sub-clauses 4(2A), (2B) and (2C) have been inserted which specifies the eligibility and shareholding of the stock exchanges desirous of operating in IFSC.
Clause 4(2A) - “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 clearing corporation in IFSC wherein at least fifty one per cent. of paid up equity share capital is held by such stock exchange or clearing corporation”.
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 five per cent of the paid up equity share capital in a recognised clearing corporation in IFSC, subject to applicable law may acquire or hold, either directly or indirectly, either individually or together with persons acting in concert, up to fifteen per cent. of the paid-up equity share capital of such clearing corporation”.
Clause 4(2C) - “For the purpose of clause 2A) and 2B) above, that the provisions of Regulation 19, 19A and 20 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 should be, mutatis mutandis, complied with”.
[SEBI Circular No. SEBI/HO/MRD2/DCAP/CIR/P/2020/149]
