On 29-07-2024, the Securities and Exchange Board of India (‘SEBI’) notified the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Third Amendment) Regulations, 2024 to amend the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018. They came into force on 30-07-2024.
Key Points:
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The 2024 Regulations have amended Regulation 21(1) to state that the recognized stock exchanges(s) and the recognized clearing corporation(s) must disclose their shareholding pattern on their respective websites on a quarterly basis as per the format specified for listed companies as per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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Earlier, Regulation 21(1) required the recognized stock exchange(s) and the recognized clearing corporation(s) to disclose their shareholding pattern to the Board quarterly within fifteen days from the end of each quarter as per the format specified by the Board.
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By way of amendment in Regulation 29(2)(a), the recognized stock exchange(s) and the recognized clearing corporation(s) now do not have to constitute a Core Settlement Guarantee Fund Committee within the Functional committee.
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As per the amendment in Part III of Form A in Schedule I, the clearing corporation applying for recognition or renewal of recognition, would not have to mention details regarding any rules that provide for the direct election by clearing members on the Advisory Committee of the governing board as this para has been now omitted.
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As per the amendment in Schedule II, Part G, Para 1(c), the listed stock exchanges would be guided by the guidelines as specified by the Board from time to time for monitoring of shareholding limits and not by the Circular dated 01-01-2016.
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By way of amendment in Para V of Part H in Schedule II, the provision for ‘Selection of trading/clearing members on the Advisory Committee to the governing board’ has been omitted.
