Sebi amends equity listing agreement

Capital market regulator Securities and Exchange Board of India (Sebi) on Wednesday amended the equity listing agreement to allow two new avenues for companies. This is amide at achieving minimum public shareholding requirements.

The Sebi board, at its meeting on August 16, had taken a decision to permit additional routes, including rights and bonus issues, to facilitate companies reach the minimum public shareholding of 25 per cent by June 2013. 

“To facilitate listed entities to comply with the minimum public shareholding requirements within the specified time, the following additional methods shall be available — rights issues to public shareholders, with promoters/promoter group shareholders forgoing their rights entitlement and bonus issues to public shareholders, with promoters/promoter group shareholders forgoing their bonus entitlement,” Sebi said in a circular.

The regulator has also said companies wanting to meet the public shareholding requirement through any other means could appoarch Sebi with appropriate details.

“Further, listed entities desirous of seeking any relaxation from the available methods may approach Sebi with appropriate details. Based on merit, such requests would be considered by Sebi. It would endeavour to communicate its decision within 30 days from the date of receipt of such requests,” the circular said.

Apart from these two new routes, companies can also achieve minimum public shareholding requirements through the institutional placement programme (IPP), offer for sale by promoters, issuance of shares through prospectus and sale of shares held by promoters through the secondary market. (Business Standard)