Company eligibility for stock exchange membership requires statutory formation, director-shareholder control, regulatory financial compliance and experienced directors. The amendment permits a company formed under the Companies Act to be elected as a stock exchange member if it complies with Companies Act formation requirements, undertakes to meet SEBI-specified financial norms for registration, has a majority of directors who are shareholders with at least forty percent of paid-up equity held by those directors or the appointing body corporate, ensures directors are not disqualified or connected with previously defaulting or expelled member companies, and has at least two directors with requisite experience in securities dealing, portfolio management, or investment consulting.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Company eligibility for stock exchange membership requires statutory formation, director-shareholder control, regulatory financial compliance and experienced directors.
The amendment permits a company formed under the Companies Act to be elected as a stock exchange member if it complies with Companies Act formation requirements, undertakes to meet SEBI-specified financial norms for registration, has a majority of directors who are shareholders with at least forty percent of paid-up equity held by those directors or the appointing body corporate, ensures directors are not disqualified or connected with previously defaulting or expelled member companies, and has at least two directors with requisite experience in securities dealing, portfolio management, or investment consulting.
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