(1) The public holding in a recognised stock exchange shall not be less than fifty one per cent of the paid up equity share capital of that recognised stock exchange.
(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,—
(a) a stock exchange;
(b) a depository;
(c) a banking company;
(d) an insurance company; and
(e) 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,-
(a) a foreign stock exchange;
(b) a foreign depository;
(c) a foreign banking company;
(d) a foreign insurance company;
(e) a foreign commodity derivatives exchange; and
(f) a bilateral or multilateral financial institution approved by the Central Government, 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 (a) to (f) shall mean persons recognised/ incorporated outside India.
(4) Subject to the limits as otherwise prescribed by the Central Government from time to time, 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
(5) No clearing corporation shall hold any right, stake or interest, of whatsoever nature, in any recognised stock exchange.
Shareholding in a recognised clearing corporation