Regulation 18 - Shareholding in a recognised clearing corporation. - Securities Contracts (Regulation) (Stock Exchanges And Clearing Corporations) Regulations, 2012

Shareholding in a recognised clearing corporation. 18.(1) Atleast fifty one per cent. of the paid up equity share capital of a recognised clearing corporation shall be held by one or more recognised stock exchange(s): Provided that no recognised stock exchange shall, directly or indirectly, either individually or together with persons acting in concert, acquire or hold more than fifteen per cent. of the paid up equity share capital in more than one recognised clearing corporation. (2) No person resident in India, except a recognised stock exchange as permitted in sub-regulation (1), 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 clearing corporation: Provided that,- (i) a depository; (ii) a banking company; (iii) an insurance company; and (iv) 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 clearing corporation. (3) No person resident outside India shall, 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. (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 clearing corporation 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 recognized clearing corporation otherwise than through the secondary market. ] (5) Any person holding equity shares in a recognised clearing corporation in excess of the limits specified in this regulation on the date of commencement of these regulations shall comply with the conditions specified in this regulation within a period of three years from the date of such commencement. ********* 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 clearing corporation otherwise than through secondary market. 5. Inserted vide Notification No. SEBI/LAD/NRO/GN/2015-16/037 dated 07-03-2016