On August 7, 2020, the Securities and Exchange Board of India (SEBI) amended the clause 4 (2) of SEBI international financial services centre (IFSC) guidelines, 2015 pertaining to eligibility criteria and shareholding limit for clearing corporations that wish to operate in such centres.
- Under the norms, any Indian recognised stock exchange or clearing corporation, or, any recognised stock exchange or clearing corporation of a foreign jurisdiction, will form a subsidiary to provide the services of a clearing corporation in IFSC wherein at least 51% stake is held by such exchange or clearing corporation.
- The remaining share capital may be acquired or held by any other person. Besides, such a person will not at any time, acquire or hold more than 5% stake in a clearing corporation in IFSC, subject to applicable laws.
- Any other stock exchange, depository, bank, insurance company of Indian or foreign jurisdiction have been allowed to acquire 15% stake in such clearing corporation operating in an IFSC.
- Public financial institutions may acquire or hold up to 15% of the paid up equity share capital of such clearing corporations with prior approval of the board.
Notably, India’s only IFSC is in Gujarat International Finance Tec-City (GIFT) city near Ahmedabad in Gujarat.
Recent Related News:
After exercising the powers conferred under section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the board of SEBI has amended the regulation 3, in sub-regulation (2) of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SEBI-SAST) to enhance the acquisition limit for promoters of a listed company by Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) (Amendment) Regulations, 2020.
Chairman– Ajay Tyagi
Headquarter– Mumbai, Maharashtra