Manner of achieving minimum public shareholding
SEBI
vide circular dated 22nd February, 2018 has prescribed additional methods to facilitate listed
entities to comply with the minimum public shareholding requirements. Following
are the two additional methods:
·
Open
Market sale: Promoter/promoter group can sell
shares upto 2% of the paid up equity share capital subject to five times
average monthly trading volume of shares
With respect to sale of shares in the open market,
SEBI has prescribed following conditions:
The listed entity
shall:
1. have
to give the following details to the stock exchanges, one trading day prior to
sale of shares:
Ø Intention
of the promoter/promoter group to sell the shares and also the purpose of
shares
Ø Details
of the promoter/promoter group who propose to divest their shareholding
Ø Period
within which the divestment process will be completed
Ø Total
no. of shares and the % shareholding proposed to be divested
2. Provide
an undertaking to stock exchanges from promoter/promoter group stating that
they shall not buy any shares in the open market on the dates on which the
shares are being sold by promoter(s)/promoter group
3. Shall
ensure compliance with all the legal provisions including SEBI (Prohibition of
Insider Trading) Regulations, 2015 and SEBI (SAST) Regulations, 2011
· Qualified
Institutional Placements (QIPs): Allotment of
eligible securities through QIPs in terms of Chapter VIII of the Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations,
2009.
The
circular shall supersede the circular CIR/CFD/CMD/14/2015 dated November 30,
2015
The
circular can be downloaded from the following link:
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