No person other than a sponsor can hold more than 15 percent of the equity share capital in the depository.
If a stock exchange is a sponsor of any depository then it cannot hold more than 24 percent of the paid up equity share capital of the depository.
Combined holding of all persons resident outside India cannot exceed 49 percent of its equity share capital. No FPI can have any representation in the Board of Directors of the depository. No FPI can acquire shares of the depository otherwise than through the secondary market.
A body corporate engaged in providing financial services where not less than 75% of the equity is held jointly or severally by these institutions can start a Depositpory
Commencement of Business - 1. Depository should be registered with SEBI before commencing business, 2. A depository must apply for and obtain a certificate of commencement of business from SEBI within one year from the date of receiving the certificate of registration from SEBI, 3. Bye-Laws of the depository have been approved by SEBI;
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