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The same rule will be applicable to such entity keen on operating as clearing member of a clearing corporation in the International Financial Services Centre (IFSC).
The decision, aimed at further streamlining the operations at IFSC, is based on the internal discussions and consultations held with the stakeholders.
"Any entity based in India or in a foreign jurisdiction may form a company in IFSC to act as a trading member of a stock exchange and or a clearing member of a clearing corporation in IFSC," Sebi said in a circular.
Earlier, the guidelines said that trading members and clearing members desirous of operating in IFSC as an intermediary would form a company to provide such financial services relating to securities market.
GIFT City in Gujarat is being developed as the country's first IFSC to enable Indian entities to compete on an equal footing with offshore financial centres and to provide facilities and regulations comparable to other international financial centres in the world.
In July, Sebi had announced that a domestic or foreign bourse can set up an exchange in the IFSC with at least 51% stake while the remaining can be held by other exchanges or banks, among others, with an individual cap of 15%.
Under the IFSC regime, any recognised domestic or foreign stock exchange can set up a subsidiary in the international financial services centre (IFSC) to offer services, provided they hold at least 51% stake in the venture.