SEBI issues amendments to the Listing Regulations - reclassification of promoters and additional disclosure in an annual report
Currently, Regulation 31A of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) permits reclassification of promoters of listed entities as public shareholders in different scenarios, subject to the specified conditions.
The Kotak Committee on Corporate Governance in its report to SEBI provided certain recommendations which were aimed towards rationalising the existing norms pertaining to professionally managed entities and to introduce a new requirement which could enable one of the multiple promoters to get reclassified as a public shareholder. However, as several concerns were raised on the recommendations, SEBI decided to revamp the existing provisions governing reclassification of promoters/classification of entities as professionally managed.
Accordingly, on 16 November 2018, SEBI issued amendments to the Listing Regulations which, inter alia, provide revised norms relating to reclassification of promoters/public and additional disclosure in an annual report.
The amendments are effective from 16 November 2018.
This issue of First Notes aims to provide an overview of the amendments made by SEBI to the Listing Regulations.
To access the text of the notification issued by SEBI, please click here.
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