Amendments to Provisions relating to Maintenance of Minimum Public Shareholding

Our undertakings for long-term impact are an organic extension of our purpose.

They are to employ our deep knowledge of the law beyond the business, the transaction, the deal. To use the opportunities and skills we possess, to reflect on the culture we’re creating. Individually and collectively, these are our efforts to help shape the thinking of our future generations, and arm them with strategies for true, sustainable growth.

Sep 01, 2018

Amendments to Provisions relating to Maintenance of Minimum Public Shareholding

The Ministry of Finance (Department of Economic Affairs) has, by way of a notification dated July 24, 2018, amended Rule 19A of the Securities Contracts (Regulations) Rules, 1957. The amendment provides that if pursuant to the implementation of a resolution plan under Section 31 of the Insolvency and Bankruptcy Code, 2016, (i) the public shareholding of a listed company falls below 25%, then the company is required to increase its public shareholding to at least 25%, within a period of three years; and (ii) if the public shareholding of a listed company falls below 10%, the company is required to increase its public shareholding to at least 10% within a period of 18 months from the date of such decrease.

DISCLAIMER

These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.