TMI BlogImplementation of schemes through trustX X X X Extracts X X X X X X X X Extracts X X X X ..... a trust(s). (2) A company may implement several schemes as permitted under these regulations through a single trust: Provided that such single trust shall keep and maintain proper books of account, records and documents, for each such scheme so as to explain its transactions and to disclose at any point of time the financial position of each scheme and in particular give a true and fair view of the state of affairs of each scheme. (3) SEBI may specify the minimum provisions to be included in the trust deed under which the trust is formed, and such trust deed and any modifications thereto shall be mandatorily filed with the stock exchange in India where the shares of the company are listed. (4) A person shall not be appointed as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isition, for the purposes of implementation of the scheme(s). (9) For the purposes of disclosures to the stock exchange, the shareholding of the trust shall be shown as non-promoter and non-public shareholding. Explanation: For the removal of doubts, it is clarified that shares held by the trust shall not form part of the public shareholding which needs to be maintained at a minimum of twenty five per cent as prescribed under Securities Contracts (Regulation) Rules, 1957. (10) Secondary acquisition in a financial year by the trust shall not exceed two per cent of the paid up equity capital as at the end of the previous financial year. (11) The total number of shares under secondary acquisition held by the trust shall at no tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res that the trust may acquire through secondary acquisition, then such shortfall of shares shall be made up by the company through new issue of shares to the trust in accordance with the provisions of new issue of shares under the applicable laws. (12) The un-appropriated inventory of shares which are not backed by grants, acquired through secondary acquisition by the trust under Part A, Part B or Part C of Chapter III of these regulations, shall be appropriated within a reasonable period which shall not extend beyond the end of the subsequent financial year: Provided that if such trust(s) existing as on the date of notification of these regulations are not able to appropriate the un-appropriated inventory within one year of such not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for implementing the schemes covered under Part D and Part E of Chapter III of these regulations, and for this purpose - (i). the trustee shall record the reasons for such sale; and (ii). money so realised on sale of shares shall be utilised within a definite time period as stipulated under the scheme or trust deed. (d). participation in buy-back or open offers or delisting offers or any other exit offered by the company generally to its shareholders, if required; (e). for repaying the loan, if the un-appropriated inventory of shares held by the trust is not appropriated within the timeline as provided under sub-regulation (12) of this regulation; (f). winding up of the scheme(s); and (g). based on approval granted by SEB ..... X X X X Extracts X X X X X X X X Extracts X X X X
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