Section 17 in The Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012
17. Shareholding in a recognised stock exchange.
(1)Atleast fifty one per cent. of the paid up equity share capital of a recognised stock exchange shall be held by public.(2)No person resident in India shall at any time, directly or indirectly, either individually or together with persons acting in concert, acquire or hold more than five per cent. of the paid up equity share capital in a recognised stock exchange:Provided that,-(i)a stock exchange;(ii)a depository;(iii)a banking company;(iv)an insurance company; and(v)a public financial institution, may acquire or hold, either directly or indirectly, either individually or together with persons acting in concert, upto fifteen per cent. of the paid up equity share capital of a recognised stock exchange.(3)No person resident outside India, directly or indirectly, either individually or together with persons acting in concert, shall acquire or hold more than five per cent. of the paid up equity share capital in a recognised stock exchange:[Provided that, -(i)a foreign stock exchange;(ii)a foreign depository;(iii)a foreign banking company;(iv)an foreign insurance company; and(v)a foreign commodity derivatives exchange,may acquire or hold, either directly or indirectly, either individually or together with persons acting in concert, upto fifteen per cent. of the paid up equity share capital of a recognised stock exchange.Explanation. - For the purposes of this proviso, the persons referred to in clauses (i) to (v) shall mean persons recognised/ incorporated outside India.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2016-17/020, dated 11.1.2017 (w.e.f. 20.6.2012).](4)[Subject to the limits as otherwise prescribed by the Central Government from time to time,] [Inserted by Notification No. SEBI/LAD/NRO/GN/2015-16/037, dated 7.3.2016 (w.e.f. 20.6.2012).] the combined holding of all persons resident outside India in the paid up equity share capital of a recognised stock exchange shall not exceed, at any time, forty-nine per cent. of its total paid up equity share capital, subject to the following:(a)[ ***] [Omitted by Notification No. SEBI/LAD/NRO/GN/2015-16/037, dated 7.3.2016 (w.e.f. 20.6.2012).](b)[ ***] [Omitted by Notification No. SEBI/LAD/NRO/GN/2015-16/037, dated 7.3.2016 (w.e.f. 20.6.2012).](c)[ ***] [Omitted by Notification No. SEBI/LAD/NRO/GN/2015-16/037, dated 7.3.2016 (w.e.f. 20.6.2012).][***] [Omitted by Notification No. SEBI/LAD-NRO/GN/2016-17/020, dated 11.1.2017 (w.e.f. 20.6.2012).][***] [Omitted by Notification No. SEBI/LAD-NRO/GN/2016-17/020, dated 11.1.2017 (w.e.f. 20.6.2012).](5)No clearing corporation shall hold any right, stake or interest, of whatsoever nature, in any recognised stock exchange.
