New rules for stock exchanges and clearing corporations

0
1167
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

The Securities and Exchange Board of India (SEBI), notified the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 (SECC Regulations), on 20 June to regulate the recognition, ownership and governance of stock exchanges and clearing corporations.

Recognition

The SECC Regulations prescribe the mandatory recognition of all stock exchanges and clearing corporations. To be recognized as a stock exchange or clearing corporation, a company must be limited by shares, demutualized, and must comply with the ownership, governance structure, net worth, and other requirements specified in the regulations.

Net worth

Every recognized stock exchange (RSE) must have a minimum net worth of ₹1 billion (US$18 million) at all times. If a RSE has a net worth of less than ₹1 billion, it must generate this amount within three years from the date of the commencement of the SECC Regulations, i.e. 20 June.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

The legislative and regulatory update is compiled by Nishith Desai Associates, a Mumbai-based law firm. The authors can be contacted at nishith@nishithdesai.com. Readers should not act on the basis of this information without seeking professional legal advice.

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link