SEBI relaxes norms on changing names by listed firms

Relaxing provisions for change in names by companies, regulator SEBI today said any listed firm seeking to undertake such an exercise can do so provided that the amount invested in new projects associated with change of profile is at least 50 per cent of their assets.

As per the earlier rule, at least 50 per cent of the total revenue of such firms was required to have been from activities associated with the any company's new name for a period of one year preceding the change.

"It is observed from the representations received from few companies and feedback received from the stock exchanges that the companies, where the gestation period of the business is usually longer and the revenue stream often delayed, find it difficult to comply with the aforesaid provision," SEBI said in a circular. (PTI)