First Notes SEBI issues amendments to the Listing Regulations - KPMG • Uniform conditions for reclassification: Currently, Regulation 31A of the Listing Regulations specifies certain conditions for reclassification of promoters of a listed entity as public shareholders in different scenarios including: a) When a new promoter replaces the previous promoter subsequent to an open offer or in any other manner
REFORMS IN SEBI’S REGULATION 31A: ALIGNMENT OF PROMOTERS RE . . . Regulation 31(A) of the LODR Regulation prescribes stringent regulations and reclassification of outgoing promoters which lead to the complexities in the M A transactions The ongoing article creates an inconsistency between SEBI ( Listing Obligation And Disclosure Requirement ) and SEBI (Substantial Acquisition Of Shares And Takeover) Code
SECURITIES AND EXCHANGE BOARD OF INDIA Memorandum to the Board Revision . . . Under the current provisions, certain conditions for re-classification of promoters as public shareholders have been laid down for two specific scenarios, as follows: i When a new promoter replaces the previous promoter subsequent to an open offer or in any other manner and ii
Framework for reclassification of shareholders – SEBI amendments The revised regulation 31A of the Listing Regulations has streamlined the re-classification process by providing for an express framework and a uniform procedure for re-classification of promoters members of promoter group
Revision of Provisions Pertaining to Re-Classification of Shareholders Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR Regulations) provides for conditions with respect to re-classification of shareholders of listed entities
LODR - Regulation 31A - Companies Act Integrated Ready Reckoner . . . Disclosure of Class of shareholders and Conditions for Reclassification 31A (1) All entities falling under promoter and promoter group shall be disclosed separately in the shareholding pattern appearing on the website of all stock exchanges having nationwide trading terminals where the specified securities of the entity are listed, in
Analysis of Regulation 31 31A of SEBI Regulations 2015 REGULATION 31A – DISCLOSURE OF CLASS OF SHAREHOLDERS AND CONDITIONS FOR RECLASSIFICATION The shareholding pattern of Promoter and Promoter group will appear on Website of Stock Exchange having nationwide trading terminals where the specified securities of the entity are listed
Re-classification of any person as Promoter public - Regulation 31A The Amended Regulation 31A streamlined the process for reclassification of promoters and provides for one set of rules applicable to all reclassifications There were several ambiguities under the old regime which have been addressed and certain loopholes have also been plugged
RECLASSIFICATION OF PROMOTERS - Tax Management India The approval rejection of the application is to be disclosed to the Stock Exchange as material event within 24 hours of communication of decision of Stock Exchange After reclassification Regulation 31A (4) provides that the promoter(s) seeking re-classification, subsequent to re-classification as public, shall comply with the following