SEBI Allows Foreign Stock Exchanges to Set Up in Gift City

Source: Regulation Asia Editors, Regulation Asia 2020-07-14

Indian or foreign stock exchanges can set up a majority-owned subsidiary with other investors to provide stock exchange services in Gift City.

SEBI (Securities and Exchange Board of India) has eased its Gift City rules to allow any Indian or foreign stock exchange to set up a majority-owned subsidiary to provide stock exchange services in the IFSC (international financial services centre).

To date, only a few categories of investors such as Indian banks, insurance companies and public institutions have been allowed to hold shares of stock exchanges based in Gift City.

Under the new rules, up to 49 percent of the share capital of the new subsidiary may be owned by any other person (or persons acting in concert) domestically or overseas, subject to an ownership cap of 5 percent.

Stock exchanges, depositories, banking companies, insurance companies, commodity derivatives exchanges, Indian public financial institutions, and bilateral or multilateral financial institutions may own up to 15 percent in such an exchange, subject to Board approval.

SEBI

SEBI Allows Foreign Stock Exchanges to Set Up in Gift City

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