SEBI Sets New Framework for Market Infrastructure Institutions

SEBI announced a new framework for Market Infrastructure Institutions (MIIs) to monitor shareholding limits and public shareholding requirements. The initiative requires MIIs to disclose shareholdings and appoint Designated Depositories for compliance monitoring. The framework addresses foreign holding limits and mandates compliance measures for shareholders.

The Securities and Exchange Board of India (SEBI) has unveiled a comprehensive framework aimed at monitoring shareholding limits and public shareholding requirements within Market Infrastructure Institutions (MIIs), including stock exchanges, clearing corporations, and depositories.

This regulation mandates both listed and unlisted MIIs to disclose their shareholding patterns quarterly on their websites, adhering to SEBI's Listing Obligations and Disclosure Requirements (LODR) norms. A significant provision includes the appointment of a non-associated Designated Depository (DD) for monitoring compliance with shareholding limits.

The framework also addresses foreign holding limits and specifies compliance measures. The new guidelines will come into effect on January 12, 2025, offering MIIs a clear timeline for adhering to these regulations.

(With inputs from agencies.)