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Date: 28-Aug-2024 Category: Extra Ordinary State: Union Government Country: India

Publication of Notification of Securities Contracts Regulation Amendment Rules 2024

Issued by Ministry of Finance · Department of Economic Affairs

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Executive Summary & Key Takeaways

What it means

  • This gazette notification announces amendments to the Securities Contracts (Regulation) Rules, 1957. These amendments primarily focus on clarifying the application of certain rules regarding listing of securities on recognized stock exchanges within International Financial Services Centres (IFSCs).

Key Changes

  • The amendments introduce definitions for "International Financial Services Centre" and "International Financial Services Centres Authority" in Rule 2, referencing the International Financial Services Centres Authority Act, 2019.
  • Rule 19 is amended to specify that for companies listing securities in an IFSC, the requirement of "twenty-five percent" in sub-clause (i) is changed to "ten percent", and sub-clauses (ii), (iii), and (iv) do not apply.
  • Rule 19A is similarly amended to reduce the "twenty-five percent" threshold to "ten percent" for companies already listed in an IFSC, and the first proviso to sub-rule (5) no longer applies.

Impact Analysis

Impact on Companies

  • Companies already listed in IFSCs will benefit from the relaxed regulations in Rule 19A, simplifying compliance requirements.

Impact on IFSCs

  • The changes could lead to increased foreign investment and a more vibrant capital market within IFSCs.

Impact on Regulators

  • The International Financial Services Centres Authority (IFSCA) will have a more streamlined regulatory process for companies listing in IFSCs.

Suggested Action Items

  • Monitor the effects of the amendments on market activity within IFSCs.

Key Entities Referenced

Securities Contracts (Regulation) Act, 1956: The primary legislation under which these rules are made. Securities Contracts (Regulation) Rules, 1957: The rules amended by this notification. International Financial Services Centres Authority Act, 2019: The Act defining International Financial Services Centres and their governing authority. International Financial Services Centres Authority (IFSCA): The regulatory body for IFSCs. Ministry of Finance (Department of Economic Affairs): The government department responsible for issuing this notification. Gazette of India, Extraordinary, Part II, Section 3: The official publication where the notification was published.
Official Source Record View Original Source →
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-28082024-256700 CG-DxLx-xEG-I2D8H0x8x2x0 24-256700 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 479] नई दिल्ली, बुधिार, अगस्ट्त 28, 2024/भाद्र 6, 1946 No. 479] NEW DELHI, WEDNESDAY, AUGUST 28, 2024/BHADRA 6, 1946 जित्त मत्रं ालय (आर्थकि काय ि जिभाग) अधिसचू ना नई दिल्ली, 28 अगस्ट् त, 2024 सा.का.जन. 518(अ).—केंद्रीय सरकार, प्रजतभूजत संजििा (जिजनयमन) अजधजनयम, 1956 (1956 का 42) की धारा 30 द्वारा प्रित्त िजियों का प्रयोग करते हुए, प्रजतभूजत संजििा (जिजनयमन) जनयम, 1957 का और संिोधन करने के जलए जनम्नजलजखत जनयम बनाती ह,ै अथाित ् :-- 1. (1) इन जनयमों का संजिप्त नाम प्रजतभूजत संजििा (जिजनयमन) संिोधन जनयम, 2024 ह ै। (2) य ेरािपत्र में इनके प्रकािन की तारीख को प्रिृत्त होंगे । 2. प्रजतभूजत संजििा (जिजनयमन) जनयम, 1957 (जिसे इसम ें इसके पश्चात ् उि जनयम कहा गया है) के जनयम 2 म,ें खडं (ग) के पश्चात,् जनम्नजलजखत खंड अतं :स्ट्थाजपत दकए िाएगं े, अथाित् :-- ‘(गक) “अतं रराष्ट्रीय जित्तीय सेिा केंद्र” से अतं रराष्ट्रीय जित्तीय सेिा केंद्र प्राजधकरण अजधजनयम, 2019 (2019 का 50) की धारा 3 की उपधारा (1) के खडं (छ) म ें यथा पररभाजित कोई अतं रराष्ट्रीय जित्तीय सेिा केंद्र अजभप्रेत ह ै; 5472 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (गख) “अंतरराष्ट्रीय जित्तीय सेिा केंद्र प्राजधकरण” से अतं रराष्ट्रीय जित्तीय सेिा केंद्र प्राजधकरण अजधजनयम, 2019 (2019 का 50) की धारा 4 की उपधारा (1) के अधीन स्ट्थाजपत प्राजधकरण अजभप्रेत ह ै।’। 3. उि जनयम के जनयम 19 में, उपजनयम (2) के खंड (ख) म,ें चौथे परंतुक के पश्चात्, जनम्नजलजखत स्ट्पष्टीकरण अंत:स्ट्थाजपत दकया िाएगा, अथाित ् :-- ‘स्ट्पष्टीकरण—इस खंड के प्रयोिनों के जलए, उपखडं (i) के उपबंध, दकसी अंतरराष्ट्रीय जित्तीय सेिा केंद्र में दकसी मान्यताप्राप्त स्ट्टॉक एक्सचेंि पर अपनी प्रजतभूजतयां सूचीबद्ध करने की इच्छुक दकसी आिेिक कंपनी को, या के संबंध म,ें इस उपांतरण के अधीन रहत े हुए लागू होंग े दक उस उपखंड में “पच्चीस प्रजतित” के प्रजतजनिेि को, ऐसी कंपनी की जनगिम-पश्चात ् पूंिी पर जिचार दकए जबना, “िस प्रजतित” के प्रजतजनििे के रूप में समझा िाएगा, और उपखंड (ii), उपखडं (iii) और उपखंड (iv) लाग ूनहीं होंगे ।’। 4. उि जनयम के जनयम 19क में, उपजनयम (6) के स्ट्पष्टीकरण के पश्चात्, जनम्नजलजखत स्ट्पष्टीकरण अतं :स्ट्थाजपत दकया िाएगा, अथाित ् :-- ‘स्ट्पष्टीकरण—इस खंड के प्रयोिनों के जलए, उप जनयम (1) स े उप जनयम (5) के उपबंध, दकसी अंतरराष्ट्रीय जित्तीय सेिा केंद्र में दकसी मान्यताप्राप्त स्ट्टॉक एक्सचेंि म ें सूचीबद्ध दकसी कंपनी को, या के संबंध म,ें इस उपांतरण के अधीन रहते हुए लागू होंगे दक उन उप जनयमों में “पच्चीस प्रजतित” के प्रजतजनििे को, “िस प्रजतित” के प्रजतजनिेि के रूप म ेंसमझा िाएगा, और उस कंपनी को उप जनयम (5) का पहला परंतुक लागू नहीं होगा ।’। [फा. स.ं 1/2/2024- पी एम] सुरजभ िैन, संयुक् त सजचि (जित्तीय बािार) रटप्पण : मूल जनयम, भारत के रािपत्र, असाधारण, भाग II, खंड 3 में अजधसूचना सं. का.जन.आ. 576, तारीख 21 फरिरी, 1957 द्वारा प्रकाजित दकए गए थ े और तत्पश्चात ् जनम्नजलजखत अजधसूचना सं. द्वारा संिोजधत दकए गए:- (1) सा.का.जन. 1096, तारीख 14 िुलाई, 1967 ; (2) सा.का.जन. 685, तारीख 3 िनू , 1972 ; (3) सा.का.जन. 959, तारीख 8 अगस्ट्त, 1972 ; (4) सा.का.जन. 2641, तारीख 1 निम्बर, 1975 ; (5) सा.का.जन. 1083, तारीख 11 निम्बर, 1985 ; (6) सा.का.जन. 666(अ), तारीख 20 िलु ाई, 1987 ; (7) सा.का.जन. 1070(अ), तारीख 15 निम्बर, 1985 ; (8) सा.का.जन. 870(अ), तारीख 13 निम्बर, 1992 ; (9) सा.का.जन. 617(अ), तारीख 20 जसतम्बर, 1993 ; (10) सा.का.जन. 749(अ), तारीख 12 अिूबर, 1994 ; (11) सा.का.जन. 790(अ), तारीख 7 निम्बर, 1994 ; (12) सा.का.जन. 121(अ), तारीख 9 माचि, 1995 ; (13) सा.का.जन. 291(अ), तारीख 27 माचि, 1995 ; (14) सा.का.जन. 581(अ), तारीख 23 दिसम्बर, 1996 ; (15) सा.का.जन. 654(अ), तारीख 8 अगस्ट्त, 2000 ;[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 (16) सा.का.जन. 655(अ), तारीख 8 अगस्ट्त, 2000 ; (17) सा.का.जन. 415(अ), तारीख 7 िून, 2001 ; (18) सा.का.जन. 696(अ), तारीख 28 अगस्ट्त, 2003 ; (19) सा.का.जन. 395(अ), तारीख 10 िून, 2009 ; (20) सा.का.जन. 469(अ), तारीख 4 िून, 2010 ; (21) सा.का.जन. 662(अ), तारीख 9 अगस्ट्त, 2010 ; (22) सा.का.जन. 705(अ), तारीख 24 अिूबर, 2013 ; (23) सा.का.जन. 21(अ), तारीख 16 िनिरी, 2014 ; (24) सा.का.जन. 611(अ), तारीख 22 अगस्ट्त, 2014 ; (25) सा.का.जन. 682(अ), तारीख 19 जसतम्बर, 2014 ; (26) सा.का.जन. 819(अ), तारीख 18 निम्बर, 2014 ; (27) सा.का.जन. 125(अ), तारीख 25 फरिरी, 2015 ; (28) सा.का.जन. 268(अ), तारीख 20 माचि, 2017 ; (29) सा.का.जन. 664(अ), तारीख 27 िून, 2017 ; (30) सा.का.जन. 822(अ), तारीख 3 िुलाई, 2017 (31) सा.का.जन. 675(अ), तारीख 25 िुलाई, 2018 ; (32) सा.का.जन. 738(अ), तारीख 3 अगस्ट्त, 2018 ; (33) सा.का.जन. 189(अ), तारीख 19 माचि, 2020 ; (34) सा.का.जन. 485(अ), तारीख 31 िुलाई, 2020 ; (35) सा.का.जन. 423(अ), तारीख 19 िून, 2021 ; (36) सा.का.जन. 520(अ), तारीख 30 िुलाई, 2021 ; और (37) सा.का.जन. 03(अ), तारीख 2 िनिरी, 2023 । MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 28th August, 2024 G.S.R. 518(E).— In exercise of the powers conferred by section 30 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Central Government hereby makes the following rules further to amend the Securities Contracts (Regulation) Rules, 1957, namely:– 1. (1) These rules may be called the Securities Contracts (Regulation) Amendment Rules, 2024. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Securities Contracts (Regulation) Rules, 1957 (hereinafter referred to as the said rules), in rule 2, after the clause (c), the following clauses shall be inserted, namely: – ‘(ca) “International Financial Services Centre” means an International Financial Services Centre as defined in clause (g) of sub-section (1) of section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019); (cb) “International Financial Services Centres Authority” means the Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019 (50 of 2019);’. 3. In the said rules, in rule 19, in sub-rule (2), in clause (b), after the fourth proviso, the following explanation shall be inserted, namely: –4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] “Explanation. – For the purposes of this clause, the provisions of sub-clause (i) shall apply to, or in relation to, an applicant company desirous of getting its securities listed on a recognised stock exchange in an International Financial Service Centre, subject to the modification that the reference to “twenty-five per cent.” in that sub-clause shall be construed as reference to “ten per cent.”, irrespective of the post issue capital of such company and sub-clauses (ii), (iii) and (iv) shall not apply.”. 4. In the said rules, in rule 19A, after the explanation to sub-rule (6), the following explanation shall be inserted, namely: – “Explanation. – For the purposes of this rule, the provisions of sub-rules (1) to (5) shall apply to, or in relation to, a company listed on a recognised stock exchange in an International Financial Service Centre, subject to the modification that references to “twenty-five per cent.” in those sub-rules shall be construed as references to “ten per cent.” and the first proviso to sub-rule (5) shall not apply to such company.”. [F. No. 1/2/2024-PM] SURBHI JAIN, Jt. Secy. (Financial Markets) Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3 vide number S.R.O, dated the 21st February, 1957 and subsequently amended vide numbers as under: (1) G.S.R. 1096, dated the 14th July, 1967; (2) G.S.R. 685, dated the 3rd June, 1972; (3) G.S.R. 959, dated the 8thAugust, 1972; (4) G.S.R. 2641, dated the 1st November, 1975; (5) G.S.R. 1083, dated the 11th November, 1985; (6) G.S.R. 666(E), dated the 20th July, 1987; (7) G.S.R. 1070(E), dated the 15th November, 1988; (8) G.S.R. 870(E), dated the 13th November, 1992; (9) G.S.R. 617(E), dated the 20th November, 1993; (10) G.S.R. 749(E), dated the 12th October, 1994; (11) G.S.R. 790(E), dated the 7th November, 1995; (12) G.S.R. 121(E), dated the 9th March, 1995; (13) G.S.R. 291(E), dated the 27th March, 1995; (14) G.S.R. 581(E), dated the 23rd December, 1996; (15) G.S.R. 654(E), dated the 8th August, 2000; (16) G.S.R. 655(E), dated the 8th August, 2000; (17) G.S.R. 415(E), dated the 7th June, 2001; (18) G.S.R. 696(E), dated the 28th August, 2003; (19) G.S.R. 395(E), dated the 10th June, 2009; (20) G.S.R. 469(E), dated the 4th June, 2010; (21) G.S.R. 662(E), dated the 9th August, 2010; (22) G.S.R. 705(E), dated the 25th October, 2013; (23) G.S.R. 21(E), dated the 16th January, 2014; (24) G.S.R. 611(E), dated the 22nd August, 2014; (25) G.S.R. 682(E), dated the 22nd September, 2014; (26) G.S.R. 819(E), dated the 19th November, 2014; (27) G.S.R. 125(E), dated the 26th February, 2015; (28) G.S.R. 268(E), dated the 20th March, 2017; (29) G.S.R. 664(E), dated the 28th June, 2017; (30) G.S.R. 822(E), dated the 3rd July, 2017; (31) G.S.R. 675(E), dated the 25th July, 2018; (32) G.S.R. 738(E), dated the 3rd August, 2018; (33) G.S.R. 189(E), dated the 19th March, 2020; (34) G.S.R. 485(E), dated the 31st July, 2020; (35) G.S.R. 423(E), dated the 19th June, 2021; (36) G.S.R. 520(E), dated the 30th July, 2021 and (37) G.S.R. 03(E), dated the 2nd January, 2023. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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