This circular outlines the framework for monitoring shareholding ...

Shareholding Norms for Stock Exchanges, Clearing Houses & Depositories.

Circulars     SEBI

October 15, 2024

This circular outlines the framework for monitoring shareholding norms of Market Infrastructure Institutions (MIIs) like stock exchanges, clearing corporations, and depositories. Key aspects include appointing a Designated Depository (DD) for monitoring shareholding limits, disclosing shareholding patterns quarterly on websites as per LODR formats, monitoring breaches of limits like 5%, 15%, 49% by persons resident outside India, trading members' aggregate 49% limit, clearing corporations' requirement of 51% held by stock exchanges. The DD to freeze excess shareholding, disable e-voting rights, transfer corporate benefits to investor protection funds upon breaches. MIIs to ensure shareholders are fit and proper, make investors aware of eligibility criteria, submit quarterly reports on non-fit shareholders. Divestment of excess stakes through special window for listed MIIs. Provisions effective 90 days from issuance, superseding previous circulars.

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