Shareholding eligibility: holders must be fit and proper and obtain Board approval when prescribed shareholding thresholds are exceeded. Eligibility to acquire or hold equity shares of a recognised stock exchange or recognised clearing corporation requires being a fit and proper person; acquisitions or holdings that cross prescribed thresholds require Board approval within specified timeframes, and where approval is refused the excess shares must be divested. Holders above a notification threshold at commencement must comply within a transitional period, and any person above the notification threshold must file an annual declaration confirming compliance with the fit and proper criteria to the exchange or clearing corporation within fifteen days of the financial year end.