Shareholding and transferability restrictions

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....at anytime, directly or indirectly, either individually or together with persons acting in concert, hold more than five per cent. of the equity share capital in a recognised stock exchange: Provided that a stock exchange, a depository, a clearing corporation, a banking company, an insurance company and a public financial institution defined under section 4A of the Companies Act, 1956 may hold, ....

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.... assigned to it in sub-section (8) of section 2 of the Insurance Act, 1938 (4 of 1938); (III) "person resident in India" shall have the meaning assigned to it in clause (v) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999); (IV) "persons acting in concert" shall have the meaning derived from clause (e) of sub-regulation (1) of regulation 2 of the Securities and Exchange ....

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....rket if such exchange is listed: Explanation: For the purposes of this clause (c) the acquisition of shares through secondary market shall be construed as follows: (I) If the recognised stock exchange is not listed, a foreign institutional investor may acquire its shares through transactions outside of a recognised stock exchange provided it is not an initial allotment of shares; ....

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.... Substituted by the Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) (Amendment) Regulations, 2008 w.e.f. 23-12-2008. Prior to its substitution, this sub-regulation read as under:- "(1) No person shall, directly or indirectly, acquire or hold more than five per cent in the paid up equity capital of a recognised stock ex....