Sebi revises eligibility, shareholding limit for clearing corp at IFSC

Markets regulator Sebi on Friday amended international financial services centre (IFSC) guidelines pertaining to eligibility criteria and shareholding limit for clearing corporations that wish to operate in such centres.

The decision, aimed at streamlining the operations of IFSC, has been taken after consultation with stakeholders, the Securities and Exchange Board of India (Sebi) said in a circular.

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 clearing corporation in IFSC wherein at least 51 per cent stake is held by such exchange or clearing corporation, Sebi said.

The remaining share capital may be acquired or held by any other person, whether Indian or foreign jurisdiction.

Besides, such person will not at any time, directly or indirectly, either individually or together with persons acting in concert, acquire or hold more than 5 per cent stake in a clearing corporation in IFSC, subject to applicable laws.

 

Sebi further said any other stock exchange, depository, bank, insurance company of Indian or foreign jurisdiction have been allowed to acquire 15 per cent stake in such clearing corporation operating in an IFSC.

Among others, public financial institutions of Indian jurisdiction, foreign commodity derivatives exchange and bilateral or multilateral financial institutions approved by the central government "may acquire or hold, either directly or indirectly, either individually or together with persons acting in concert, up to 15 per cent of the paid up equity share capital of a such clearing corporation with prior approval of the board."

To give effect to this, Sebi has amended IFSC guidelines.

Last month, the regulator had revised eligibility criteria and the shareholding limit for stock exchanges desirous of operating in IFSC. The country's only IFSC is in GIFT City near Ahmedabad in Gujarat.