TMI BlogSecurities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2020X X X X Extracts X X X X X X X X Extracts X X X X ..... ing regulations to further amend the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 , namely:- 1. These regulations maybe called the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Amendment) Regulations, 2020. 2. They shall come into force on the date of their publication in the Official Gazette. 3. In the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 , - I. In regulation 2 , sub-regulation (1), - i. clause (d) shall be substituted with the following clause, namely,- clearing corporation means an entity that is established to undertake the activity of clearing and settlement of trades in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation specified under Chapter IV-A, compliance with the requirement under this clause may be demonstrated by way of outsourcing arrangement(s) with a recognized clearing corporation(s), subject to such conditions as may be specified by the Board from time to time; ii. after clause (g), the following proviso shall be inserted, namely,- Provided that where the applicant is a limited purpose clearing corporation specified under Chapter IV-A, compliance with the requirement under this clause may be demonstrated by way of outsourcing arrangement(s) with a recognized clearing corporation(s), subject to such conditions as may be specified by the Board from time to time; III. after Chapter IV , the following Chapter shall be inserted, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hold more than five per cent of the paid-up equity share capital in a recognised clearing corporation. 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, up to fifteen per cent of the paid-up equity share capital of a recognized clearing corporation. Explanation. - For the purpose of this proviso, the persons referred to in clauses (a) to (f) shall mean persons recognised/incorp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enished by the recognized limited purpose clearing corporation to the threshold level as may be specified by the Board from time to time. Utilization of profits and investments 22E . (1) The utilization of profits and investments by recognized limited purpose clearing corporations shall be in accordance with the norms specified by the Board: Provided that for the first five years from the date of grant of recognition by the board, there shall be no distribution of dividend to the shareholders and the profits of recognized limited purpose clearing corporation shall be transferred to the Fund specified in regulation 37. (2) The limited purpose clearing corporation shall not carry on any activity whether involving deployment of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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