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TMI BlogProcedures for ensuring compliance with Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 (SECC Regulations) by Listed Stock ExchangesX X X X Extracts X X X X X X X X Extracts X X X X ..... ify such conditions as it may deem fit in the interest of the securities market. 2. Accordingly, it has been decided to prescribe the following modalities so as to ensure compliance with the provisions of SECC Regulations. I. Ensuring holding of 51 per cent by public at all times by the listed stock exchange: i. The listed stock exchange shall disseminate the details of its shareholding with category wise breakup (as per the format specified vide SEBI Circular dated October 24, 2011), on a continuous basis, on its website. Similarly, the stock exchange where the shares are listed, shall also display the above information. ii. The depositories shall put in place necessary system to ensure that the shareholding of trading member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same is divested. v. The divestment of any excess shareholding beyond the specified limit would be through a special window provided by the stock exchange where the shares of the stock exchange are listed. II. Ensuring that all shareholders are fit and proper: i. In the pre-listing scenario, the exchange coming out with a public offering shall include a declaration in the application form stating that the applicant is fit and proper in terms of Regulation 19 and 20 of SECC Regulations, 2012. ii. In the post listing scenario, the text of the applicable regulation with regard to fit and proper shall be made part of the contract note. iii. The listed stock exchange shall also undertake all measures to make investors aware of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensure that no shareholder of listed stock exchange gets credit of shares beyond 5 per cent or 15 per cent, as applicable. The depositories shall generate an alert when such holding exceeds 2 per cent and monitor the same under intimation to SEBI. ii. The Depository would inform the listed stock exchange as and when threshold limit is breached and take consequential action such as freezing of voting rights and all corporate actions in respect of such excess holding till the same is divested through the special window. 3. The stock exchanges, both listed and where the securities are listed, and depositories shall ensure that aforesaid mechanism be in place latest by March 31, 2016. 4. The stock exchange submitting application for li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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