Recognition requirements for exchanges and clearing corporations: corporate demutualisation, governance, infrastructure and risk-management prerequisites. Regulation 7 requires applicants for recognition as stock exchanges or clearing corporations to be companies limited by shares, demutualised, and have fit and proper directors and shareholders; satisfy ownership, governance and net worth requirements; and demonstrate requisite financial capacity, expertise and infrastructure. Stock exchange applicants must additionally provide online trading and surveillance systems, member networks, investor protection and grievance mechanisms, dissemination facilities, business continuity arrangements and an appraised feasibility plan. Clearing corporation applicants must demonstrate clearing and settlement infrastructure, risk management, settlement procedures, guarantee fund capacity, connectivity with market infrastructure, dispute resolution, personnel and an appraised feasibility plan. The Board may grant limited in-principle approval.