Solution

Regulation 17 of Securities Contract (Stock Exchanges and Clearing Corporations) Regulation 2018 (1)The public holding in arecognised stock exchange shall not be less than fifty one per cent of the paid up equity share capital of thatrecognised 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