Fit and proper requirement: shareholders must meet standard to hold depository equity; board approval required for substantial holdings Shareholders must be fit and proper to acquire or hold depository equity; the depository must ensure this, with narrow exceptions for minor holdings. Persons seeking to hold substantial share capital must obtain prior Board approval via an application in Form E through the depository, which must verify declarations and forward the application with its recommendation. Holders of significant interests must file an annual declaration within fifteen days of the financial year end confirming compliance with the fit and proper criteria.