Recognised depository shareholding must be held by a recognised domestic or foreign depository with at least twenty-six per cent of paid-up equity share capital, or by a consortium of market infrastructure institutions holding at least fifty-one per cent. Within a consortium, eligible stock exchanges must hold at least fifty-one per cent. Other persons may not directly or indirectly acquire or hold more than twenty-five per cent, individually or with persons acting in concert.

Shareholding in a recognised clearing corporation must be anchored by eligible market infrastructure institutions. A recognised stock exchange or clearing corporation must hold at least twenty-six per cent of paid-up equity capital, or an eligible consortium must hold at least fifty-one per cent, with recognised stock exchanges holding a majority within the consortium. Other persons may not directly or indirectly, alone or with persons acting in concert, acquire or hold more than twenty-five per cent of paid-up equity capital.

Regulation 16 requires a recognised stock exchange to have prescribed ownership by a recognised stock exchange or a consortium of eligible market infrastructure institutions. A consortium must hold at least 51% of paid-up equity share capital, with recognised stock exchanges collectively holding at least 51% within the consortium. Other persons, individually or acting in concert, cannot directly or indirectly acquire or hold more than 25% of paid-up equity share capital.

Recognised market infrastructure institutions must annually submit to the Authority a statutory auditor's certificate verifying their net worth for the preceding financial year. The audited net worth certificate is due by 30 September each year.

Recognised market infrastructure institutions must maintain a minimum net worth of USD 3 million at all times. The Authority may prescribe a higher net-worth requirement as a risk-management measure, having regard to the nature and scale of the institution's business.

Withdrawal of recognition of a market infrastructure institution may be undertaken by the Authority only after the institution receives a reasonable opportunity of being heard. Recognition of a stock exchange or clearing corporation must be withdrawn through the separate procedure prescribed under the SCRA.

Renewal of recognition for a market infrastructure institution is subject to the same applicable regulatory provisions governing the grant of recognition. An application for renewal must satisfy the relevant recognition requirements under the International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021.

Recognised market infrastructure institutions must pay the regulatory fee specified by the Authority from time to time under the International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021.

Recognition of a market infrastructure institution may be granted permanently or for a period specified by the Authority, which must be at least one year.

Recognition as a stock exchange, clearing corporation or depository may be granted after the Authority considers the application and is satisfied that the applicant meets the prescribed conditions and eligibility requirements. The Authority may attach appropriate conditions to recognition. A recognised market infrastructure institution must also comply with additional conditions imposed from time to time.

Recognition applicants must be companies limited by shares, demutualised, fit and proper, and compliant with ownership, governance, net-worth, capability and infrastructure requirements. Stock exchanges require electronic trading, real-time surveillance, member regulation, investor grievance and arbitration mechanisms, information dissemination, and business-continuity systems. Clearing corporations require timely settlement infrastructure, risk management, settlement guarantees, connectivity, real-time controls and dispute-resolution arrangements. Depositories must maintain secure communications and data systems, controlled access, operational procedures, offsite backups and insurance-backed indemnification for beneficial-owner losses.

Input tax credit on tax paid through DRC-03 following a DGGI investigation raises whether payment may be made under section 73 and whether credit can be availed. The issue contrasts the section 17(5) restriction concerning credit on payments under section 74 with payments made under section 73, and considers the relevance of DGGI involvement and judicial guidance.

Recognition of a depository in an IFSC requires the application to include a copy of the depository's draft bye-laws as part of the recognition process.

Recognition applications for a stock exchange or clearing corporation in an IFSC must include the memorandum and articles of association, bye-laws, and other prescribed documents. The required documentation must comply with the Securities Contracts (Regulation) Act, applicable rules, and the Market Infrastructure Institutions Regulations.

Recognition of a market infrastructure institution in an IFSC requires an application to the Authority in the prescribed form and manner, accompanied by the fee prescribed by the Authority.

Recognition as a market infrastructure institution in an IFSC requires the applicant to be a company incorporated in the IFSC and to comply with prescribed shareholding requirements.

Recognition is mandatory for any person seeking to conduct, organise, or assist in organising a stock exchange, clearing corporation, or depository in an IFSC. Such activities may be undertaken only after obtaining recognition from the Authority in accordance with the applicable regulations.

Regulation 2 defines recognised market infrastructure institutions as recognised stock exchanges, clearing corporations and depositories in an International Financial Services Centre. It defines governance participants, including governing boards, key management personnel, public interest directors and shareholder directors. Clearing and settlement concepts include clearing corporations, clearing members, trading members, netting and novation. Associate relationships are determined through control, voting power, corporate relationships, family connections, or circumstances involving control, independence or conflict of interest. Undefined expressions adopt meanings assigned under the applicable securities, depository, company and IFSC legal framework.

International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021 are made under the enabling provisions of the International Financial Services Centres Authority Act, 2019, the Securities Contracts (Regulation) Act, 1956, and the Depositories Act, 1996. The framework takes effect on the thirtieth day following publication in the Official Gazette.

Minimum owned fund requirements apply according to the activities undertaken by finance companies. Sole aircraft operating lease transactions and non-core activities require USD 0.2 million or equivalent, subject to any higher amount needed for specific registration. Core activities require USD 3 million or equivalent, while specialised activities require USD 5 million or equivalent. Aircraft operating lease entities are exempt from specified requirements if they maintain a Board-approved prudential policy and meet fit-and-proper criteria. No exemptions are specified for core or specialised activities.