Section 7(2) in The Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012
(2)An applicant seeking recognition as a stock exchange or clearing corporation shall comply with the following conditions, namely:-(a)the applicant is a company limited by shares;(b)the applicant is demutualised;(c)the applicant, its directors and its shareholders who hold or intend to hold shares, are fit and proper persons as described in regulation 20;(d)the applicant satisfies requirements relating to ownership and governance structure specified in these regulations;(e)the applicant satisfies networth requirements specified in these regulations;(f)the applicant satisfies requisite capability including its financial capacity, functional expertise and infrastructure.Explanation. - For the purposes of this sub-regulation, the term "demutualised" means that the ownership and management of the applicant is segregated from the trading rights or clearing rights, as the case may be, in terms of these regulations.
