Interpretation of term “shareholder having trading rights” under Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006.
Summary
The circular clarifies the definition of 'shareholder having trading rights' under the 2006 Regulations to ensure public shareholding requirements are met. It specifies that this term includes shareholders with direct or indirect trading interests, where indirect interest is defined similarly to an 'associate'. The interpretation is issued under the powers conferred by Section 11(1) of the SEBI Act and Section 12A of the SCRA.
Text
The term “shareholder having trading rights” would mean a shareholder who has a trading interest in the stock exchange, whether directly or indirectly through a person having trading rights.
A shareholder having a trading interest “indirectly” in relation to a person having trading rights, would be understood in the same manner as the term “associate” is in relation to a shareholder having trading rights under regulation 2(1)(b) of the Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006.
Source: SecMarx — Interpretation of term “shareholder having trading rights” under Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006.. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.