SEBI circular, issued addresses the monitoring of shareholding of Market Infrastructure Institutions (MIIs), including stock exchanges, clearing corporations, and depositories, both listed and unlisted.
Applicability: The framework for monitoring shareholding norms for listed entities is extended to all MIIs, mandating quarterly disclosure of their shareholding patterns on their websites.
Designated Depository (DD): Each MII must appoint a DD to monitor shareholding limits under SECC Regulations, 2018, and D&P Regulations, 2018. The DD must not be an associate of the MII.
The DD shall monitor and inform the MII and stock exchange on which its shares are listed (in case of listed MII), as and when the threshold limit of 5% or 15%, as applicable under SECC Regulations, 2018 and D&P Regulations, 2018, is breached and take appropriate consequential actions.
The DD shall monitor and inform the MII and stock exchange on which its shares are listed (in case of listed MII), as and when threshold limit of combined holding of 49% of all persons’ resident outside India (directly or indirectly, either individually or together with persons acting in concert) in the paid-up equity share capital of an MII is breached and take consequential actions.
For Stock Exchanges:
The DD shall: Have mechanism for coordination between the depositories for sharing of information regarding the shareholding of the stock exchange and ensure that the shareholding of Trading Members (TMs), their associates and agents does not exceed 49% of the paid-up equity share capital of the stock exchange
Send alerts to the stock exchange and TMs, their associates and agents about the breach of the caution shareholding limit of 45% by TMs, their associates and agents and the said information shall also be disclosed on the exchange website and the website of stock exchange where it is listed (in case of listed stock exchange).
Inform to the stock exchange, its RTA, the stock exchange where it is listed (in case of listed stock exchange) and other depository about any breach of shareholding limit of 49% by TMs, their associates and agents. Stock exchange shall disseminate such breach on its website and the website of stock exchange where it is listed (in case of listed stock exchange).
For recognized Clearing Corporations (CCs)
The DD shall monitor that at least 51% of paid-up equity share capital of a CC shall always be held by one or more recognized stock exchange(s) and no recognized stock exchange shall, directly or indirectly, either individually or together with persons acting in concert, acquire or hold more than 15% of the paid-up equity share capital in more than one CC and take consequential actions.
The provisions of this circular shall come into effect from 90th day from the date of issuance of the circular
Link – https://www.sebi.gov.in/legal/circulars/oct-2024/monitoring-shareholding-of-market-infrastructure-institutions-miis-_87535.html
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