Shareholding limits in recognised stock exchanges require institutional ownership and restrict concentrated direct or concerted holdings.

Regulation 16 requires a prescribed ownership structure for a recognised stock exchange. A stock exchange recognised in India or a foreign jurisdiction must hold at least twenty-six per cent of paid-up equity share capital. A qualifying joint venture of market infrastructure institutions is also specified, with a minimum fifty-one per cent holding in the paid-up equity share capital of a recognised clearing corporation. Other persons, alone or acting in concert, cannot directly or indirectly exceed the twenty-five per cent cap in the recognised stock exchange.

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