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Govt Amends Securities Contracts (Regulation) Rules, 1957

Published on Thu, Nov 27,2014 | 22:28, Updated at Thu, Nov 27 at 22:28Source : 

The Securities and Exchange Board of India (SEBI), at its board meeting held on June 19, 2014, had decided to take up the following proposals with the Ministry of Finance to take up the following amendments to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009:

(a)  Minimum dilution to public shall be 25% or Rs 400 crores (whichever is lower) for companies with post issue capitalisation of Rs 4,000 crores.

(b)  In case dilution was less than 25%, public shareholding of 25% was to be achieved within 3 years, whether the company in question was a public sector undertaking or not.

The recommendation sought to make the dilution in public issues promoter neutral.  It also sought to remove the anomaly that existed in case of a company that fell just short of Rs 4,000 crores market capitalisation but was required to dilute Rs 1,000 crores while another company that had Rs 4,000 crore market capitalisation was required to dilute Rs 400 crores. For more please read the attached report by Khaitan & Co.

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Attachments : GovtAmendsTheSCRRules1957-KCO-ERGONewsflash.pdf

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