Section 19(1) in Central Electricity Regulatory Commission (Power Market) Regulations, 2010
(1)The shareholding pattern for equity holders in the Power Exchange shall be as follows:(i)Any shareholder other than a Member of the Power Exchange can have a maximum (whether directly or indirectly) of 25% shareholding in the Power Exchange.(ii)A Member of the Power Exchange can have a maximum (whether directly or indirectly) of 5 % shareholding in the Power Exchange.(iii)In total, a Power Exchange can have a maximum of 49% of its total shareholding owned by entities (whether directly or indirectly) which are Members of the Power Exchange.Explanation I. - "indirectly" means through an associate where an associate is -(i)one who owns or controls shares carrying not less than twenty-six percent of the voting rights of the shareholder intending to hold equity in the power exchange; or(ii)in respect of whom the shareholder intending to hold equity in the Power Exchange owns or controls shares carrying not less than twenty-six percent of the voting rights; or(iii)one who is under the same management as the shareholder intending to hold equity in the power exchange.Explanation II. - An associate shall be deemed to be under the same management:(i)if the managing director or manager of the shareholder intending to hold equity in the power exchange is the managing director or manager of the associate; or(ii)if a majority of the directors of the shareholder intending to hold equity in the power exchange constitute or any time within six months immediately preceding, constituted a majority of the directors of the associate; or(iii)if not less than one third of the total voting power with respect to any matter relating to the shareholder intending to hold equity in the power exchange and the associate is exercised or controlled by the same individual or body corporate; or(iv)if any of the directors of the shareholder intending to hold equity in the power exchange while holding the majority of shares of such shareholder also holds the majority of shares in the associate.
