Regulation 9 - Eligibility criteria for persons acquiring or holding more than 1[five per cent.] equity shares in a recognised stock exchange - Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006

9. Eligibility criteria for persons acquiring or holding more than 1 [five per cent.] equity shares in a recognised stock exchange.- 2 [(1) No person shall, directly or indirectly, either individually or together with persons acting in concert with him, acquire and/or hold more than five per cent. of the paid up equity capital of a recognised stock exchange after commencement of these regulations, unless he is a fit and proper person and has taken prior approval of the Board for doing so.] (2) For the purpose of sub-regulation (1), a person shall be deemed to be a fit and proper person if (i) such person has a general reputation and record of fairness and integrity, including but not limited to - (a) financial integrity; (b) good reputation and character; and (c) honesty. (ii) such person has not incurred any of the following disqualifications (a) the person or any of its whole time directors or managing partners has been convicted by a Court for any offence involving moral turpitude or any economic offence, or any offence against the securities laws; (b) an order for winding up has been passed against the person; (c) the person or any of its whole time directors or managing partners has been declared insolvent and has not been discharged; (d) an order, restraining, prohibiting or debarring the person, or any of its whole time directors or managing partners from dealing in securities in the capital market or from accessing the capital market has been passed by the Board, or any other regulatory authority and a period of three years from the date of the expiry of the period specified in the order has not elapsed; (e) any other order against the person or any of its whole time directors or managing partners which has a bearing on the capital market, has been passed by the Board or any other regulatory authority and a period of three years from the date of the order has not elapsed; (f) the person has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force; and (g) the person is financially not sound. (3) If any question arises as to whether a person is a fit and proper person, the Board s decision on such question shall be final. ************** NOTES:- 1. Substituted by the Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) (Amendment) Regulations, 2008 w.e.f. 23-12-2008. Prior to its substitution, it read as one percent . 2. Substituted by the Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) (Amendment) Regulations, 2008 w.e.f. 23-12-2008. Prior to its substitution, this sub-regulation read as under:- (1) No person shall, either individually or together with persons acting in concert with him, acquire and/or hold more than one per cent of the paid up equity capital of a recognised stock exchange after commencement of these regulations, unless he is a fit and proper person and has taken prior approval of the Board for doing so.