Securities Contracts (Regulation) (Second Amendment) Rules, 2020

The Ministry of Finance, by way of the Securities Contracts (Regulation) (Second Amendment) Rules, 2020 (‘SCRA Amendment’) dated July 31, 2020 has amended Rule 19A of the Securities Contracts (Regulation) Rules, 1957 which provides for maintenance of minimum public shareholding and the timelines for its attainment. Every listed company (other than public sector company) is required to maintain a public shareholding of at least 25%, provided that any listed public sector company which has public shareholding below 25%, on the commencement of the Securities Contracts (Regulation) (Amendment) Rules, 2018, was previously required to increase its public shareholding to at least 25%, within a period of two years from the date of such commencement. The SCRA Amendment now has increased such time for compliance to three years from the date of such commencement.

Published In:Inter Alia - Quarterly Edition - September 2020 [ English
Date: September 30, 2020