Securities and Exchange Board of India (Depositories and Participants) (Amendment) Regulations, 2008
F. No. 11/LC/GN/2008/20494. In exercise of the powers conferred
by section 30 of the Securities and Exchange Board of India
Act, 1992 (15 of 1992), the Board hereby makes the following
Regulations to further amend the Securities and Exchange Board
of India (Depositories and Participants) Regulations, 1996,
namely :-
1. These Regulations may be called the Securities and Exchange
Board of India (Depositories and Participants) (Amendment)
Regulations, 2008.
2. They shall come into force on the date of their publication
in the Official Gazette.
3. In the Securities and Exchange Board of India (Depositories
and Participants) Regulations, 1996, in regulation 7, -
(i) for clause (d), the following clause shall be substituted,
namely:-
“(d) the sponsor shall, at all times, hold at least
fifty-one per cent. of the equity share capital of the depository;”
(ii) in clause (e), the proviso and the Explanation shall
be omitted;
(iii) after clause (e), the following clauses and Explanation
shall be inserted, namely:-
“(ea) no person other than a sponsor, whether resident
in India or not, shall at any time, either individually or
together with persons acting in concert, hold more than five
per cent. of the equity share capital in the depository;
Explanation: For the purposes of this clause, -
(i) the expression “person resident in India”
shall have the meaning assigned to it in clause (v) of section
2 of the Foreign Exchange Management Act, 1999 (42 of 1999);
(ii) the expression “persons acting in concert”
shall have the meaning derived from clause (e) of sub-regulation
(1) of regulation 2 of the Securities and Exchange Board of
India (Substantial Acquisition of Shares and Takeovers) Regulations,
1997;
(eb) the combined holding of all persons resident outside
India in the equity share capital of the depository shall
not exceed, at any time, forty-nine per cent. of its total
equity share capital, subject further to the following:-
(i) the combined holdings of such persons acquired through
the foreign direct investment route is not more than twenty
six per cent. of the total equity share capital, at any time;
(ii) the combined holdings of foreign institutional investors
is not more than twenty three per cent. of the total equity
share capital, at any time;
(iii) no foreign institutional investor acquires shares of
the depository otherwise than through the secondary market;
(ec) no foreign institutional investor shall have any representation
in the Board of Directors of the depository;”
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