Regulation 17 - Shareholding in a recognised stock exchange. - Securities Contracts (Regulation) (Stock Exchanges And Clearing Corporations) Regulations, 2012

Shareholding in a recognised stock exchange 17. (1) Atleast fifty one per cent. of the paid up equity share capital of a recognised stock exchange shall be held by public. (2) No person resident in India shall 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 stock exchange: Provided that,- (i) a stock exchange; (ii) a depository; (iii) a banking company; (iv) an insurance company; and (v) a public financial institution, may acquire or hold, either directly or indirectly, either individually or together with persons acting in concert, upto fifteen per cent. of the paid up equity share capital of a recognised stock exchange. (3) No person resident outside India, directly or indirectly, either individually or together with persons acting in concert, shall acquire or hold more than five per cent. of the paid up equity share capital in a recognised stock exchange. (4) 1 [ Subject to the limits as otherwise prescribed by the Central Government from time to time, ] 2 [ the ] combined holding of all persons resident outside India in the paid up equity share capital of a recognised stock exchange shall not exceed, at any time, forty-nine per cent. of its total paid up equity share capital 3 [ : ] 4 [****] 5 [ Provided that no foreign portfolio investor shall acquire shares of a recognised stock exchange otherwise than through the secondary market. ] Explanation.-For the purposes of 6 [ sub-regulation (4) ] , the acquisition of shares in a recognised stock exchange through secondary market shall be construed as follows:- I. If the recognised stock exchange is not listed, a foreign 7 [ portfolio ] investor may acquire its shares through transactions outside of a recognised stock exchange provided it is not an initial allotment of shares; II. If the recognised stock exchange is listed, the transactions by a foreign 7 [ portfolio ] investor shall be done through the recognised stock exchange where such shares are listed. (5) No clearing corporation shall hold any right, stake or interest, of whatsoever nature, in any recognised stock exchange. ********* Notes:- 1. Inserted vide Notification No. SEBI/LAD/NRO/GN/2015-16/037 dated 07-03-2016 2. Substituted vide Notification No. SEBI/LAD/NRO/GN/2015-16/037 dated 07-03-2016 before it was read as The 3. Substituted vide Notification No. SEBI/LAD/NRO/GN/2015-16/037 dated 07-03-2016 before it was read as , subject to the following:- 4. Omitted vide Notification No. SEBI/LAD/NRO/GN/2015-16/037 dated 07-03-2016 before it was read as (a) the combined holding of such persons acquired through the foreign direct investment route shall not exceed twenty six per cent. of the total paid up equity share capital, at any time; (b) the combined holding of foreign institutional investors shall not exceed twenty three per cent. of the total paid up equity share capital, at any time; (c) no foreign institutional investor shall acquire shares of a recognised stock exchange otherwise than through secondary market. 5. Inserted vide Notification No. SEBI/LAD/NRO/GN/2015-16/037 dated 07-03-2016 6. Substituted vide Notification No. SEBI/LAD/NRO/GN/2015-16/037 dated 07-03-2016 before it was read as clause (c) 7. Substituted vide Notification No. SEBI/LAD/NRO/GN/2015-16/037 dated 07-03-2016 before it was read as institutional