TMI BlogManner of achieving minimum public shareholdingX X X X Extracts X X X X X X X X Extracts X X X X ..... hange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ( LODR Regulations ). 2. SEBI has been receiving representations from listed entities and other stakeholders requesting relaxation from compliance with the conditions specified in the existing methods and approval for using non-prescribed methods to achieve MPS compliance. 3. In view of the above and to facilitate listed entities achieve MPS compliance, few of the existing methods have been reviewed and rationalized and two additional methods have been introduced. Accordingly, a listed entity shall adopt any of the following methods in order to achieve compliance with the MPS requirements mandated under rules 19(2)(b) and 19A of the SCRR read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... promoter(s) / promoter group in the open market in any one of the following ways, subject to compliance with the conditions specified: i. Promoter(s) / Promoter group can sell up to 2% of the total paid-up equity share capital of the listed entity, subject to five times average monthly trading volume of the shares of the listed entity, every financial year till the due date for MPS compliance as per the SCRR (or) ii. Promoter(s) / Promoter group can sell upto a maximum of 5% of the paid-up capital of the listed entity during a financial year subject to the condition that the public holding in the listed entity shall become 25% after completion of such sale. The sale can be a single tranche or in multiple tranche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regulations, 2015 and Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. 8. Increase in public holding pursuant to exercise of options and allotment of shares under an employee stock option (ESOP) scheme, subject to a maximum of 2% of the paid-up equity share capital of the listed entity. The ESOP scheme shall be in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and the promoter(s) / promoter group shall not be allotted any shares. 9. Transfer of shares held by promoter(s) / promoter group to an Exchange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceipt of additional information as sought from the listed entity. 4. The Stock Exchange(s) shall monitor the methods adopted by listed entities to increase their public holding and comply with MPS requirements in terms of this circular. Non-compliance, if any, observed by the Stock Exchange(s) with respect to the method(s) and / or conditions prescribed herein, shall be reported to SEBI on a quarterly basis. 5. This Circular is issued in exercise of the powers conferred under sections 11 and 11A of the Securities and Exchange Board of India Act, 1992 read with regulations 38 and 101(2) of the LODR Regulations and shall supersede the circular No. SEBI/HO/CFD/CMD/CIR/P/43/2018 dated February 22, 2018. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
