Every recognised market infrastructure institution must constitute committees in accordance with requirements specified by the Authority from time to time. The committee framework remains subject to the Authority's continuing specifications.

Directors and key management personnel of recognised market infrastructure institutions must comply with the Authority-specified Code of Ethics and Code of Conduct. For non-compliance with applicable regulations or codes, or for a conflict of interest, the Authority may act on an institutional reference or on its own motion. After providing a reasonable opportunity of being heard, it may take appropriate action, including removal or termination of appointment.

Recognised market infrastructure institutions must follow prescribed governance principles and maintain boards comprising shareholder directors, public interest directors and a managing director. A public interest director must chair the board, and public interest directors must not be fewer than shareholder directors. Director appointments require prior approval, while specified members, participants, associates and agents are restricted from relevant boards. Boards must document their roles, procedures and conflict-management arrangements, and regularly review institutional and individual director performance.

Recognised market infrastructure institutions must continuously ensure that directors, key management personnel and shareholders are fit and proper persons. Listed institutions share responsibility with acquirers for shareholders holding five per cent or more, while acquirers alone bear responsibility for lower shareholdings. Fitness requires integrity, financial integrity, good character and honesty, and excludes persons affected by specified criminal convictions, regulatory recovery proceedings, insolvency, financial unsoundness, wilful default, fugitive economic offender status, or relevant regulatory restraints and orders.

Listing of securities by a recognised market infrastructure institution requires prior approval of the Authority. After obtaining approval, the institution may apply to any stock exchange for listing. Regulatory approval is therefore a precondition to initiating a listing application, while listing may be sought on any stock exchange once that condition is satisfied.

Recognised market infrastructure institutions must submit their shareholding pattern to the Authority quarterly within fifteen days after each quarter ends. Disclosures must identify the ten largest shareholders, with their number and percentage of shares, and name shareholders who acquired shares during the relevant quarter. This establishes periodic transparency over significant ownership and new share acquisitions.

Recognised market infrastructure institutions must maintain an adequate shareholding monitoring mechanism for continuous compliance with applicable shareholding conditions. Monitoring must operate at all times and requires ongoing oversight of shareholding arrangements rather than periodic or reactive verification alone.

Acquisition of equity shares or voting rights representing ten per cent or more of the paid-up equity share capital of a recognised market infrastructure institution requires prior approval. The acquirer must not have a conflict of interest. The institution must verify fit-and-proper declarations and undertakings, then forward the application with its recommendation for approval.

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.

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.