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Question

What is the requirement for a person to acquire or hold more than five percent of the paid-up equity share capital of a depository, as mentioned in Regulation 22 (3) of Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018?

A Obtain approval from the Central Government Correct Answer Incorrect Answer
B Obtain prior approval from the Board Correct Answer Incorrect Answer
C Hold less than two percent equity shares or voting rights Correct Answer Incorrect Answer
D Have a direct association with the depository Correct Answer Incorrect Answer
E Fulfill certain financial criteria Correct Answer Incorrect Answer

Solution

As per Reg 22- (3) Any person eligible to acquire or hold more than five percent of the paid up equity share capital under sub-regulation (1) and sub-regulation (2) of regulation 21 may acquire or hold more than five percent of the paid up equity share capital of a depository only if the person has obtained prior approval of the Board.

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