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SEBI notifies Amendment on IFSC Guidelines, 2015

SEBI - Amendment - IFSC Guidelines - Taxscan

The Securities Exchange Board of India (SEBI) has made an amendment to clause 4 (2) of SEBI (International  Financial Services Centres) Guidelines, 2015 which deals with the eligibility and shareholding limit for clearing corporations desirous of operating in IFSC.

The amendment has been made in the following manner :

“4. 2A) Eligibility and shareholding limit for clearing corporations desirous of operating in IFSC: Any Indian recognized stock exchange or clearing corporation, or, any recognized stock exchange or clearing corporation of a  foreign jurisdiction shall form a subsidiary to provide the services of a clearing corporation in IFSC wherein at least fifty-one percent. of paid-up equity share capital is held by such stock exchange or clearing corporation.

“2B)The  remaining  share  capital may be acquired  or  held  by any  other  person (whether  Indian  or  of  foreign  jurisdiction)and such  person shall not at  any  time, directly or indirectly, either individually or together with persons acting in concert, acquire  or  hold  more  than  five percent of  the  paid-up  equity  share  capital in a recognized clearing corporation in IFSC, subject to applicable law:

Provided further that

i)any other stock exchange,

ii)a clearing corporation,

iii)a depository,

iv)a banking company,

v)an insurance company,

whether Indian or of foreign jurisdiction for (i) to (v)

vi)a public financial institution of Indian jurisdiction,

vii)a foreign commodity derivatives exchange; and

viii)a  bilateral or multilateral financial institution approved by the  Central Government, may acquire or hold, either directly or indirectly, either individually or together with persons acting in concert, up to fifteen percent. of the  paid-up  equity  share  capital of such clearing corporation:

2C) For the purpose of clause 2A) and 2B) above, that the provisions of Regulation 19, 19Aand  20 of  Securities  Contracts  (Regulation)  (Stock  Exchanges  and Clearing Corporations)Regulations, 2018 should be,mutatis mutandis, complied with”

The amendment was made in order to further streamline the operations at IFSC, based on consultations held with the stakeholders.

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