Amendments to the Equity Listing Agreement
Summary
This circular amends the Equity Listing Agreement to allow listed companies to achieve minimum public shareholding through Institutional Placement Programmes. It mandates enhanced disclosure requirements for the utilization of funds raised upon the conversion or exercise of warrants issued with public or rights issues. The amendments are made under the powers conferred by Sections 11 and 11A of the SEBI Act, 1992.
Text
Listed company may also achieve the minimum level of public shareholding through Institutional Placement Programme (IPP) in terms of Chapter VIII-A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended.
Sale of shares by promoters through stock exchanges shall be now carried out in terms of SEBI circular CIR/MRD/DP/05/2012 dated February 1, 2012.
Listed entities have been mandated to disclose utilization of funds raised upon conversion/ exercise of warrants issued along with public or rights issue of specified securities.
This circular shall be applicable with immediate effect.
The above listing conditions are specified in exercise of the powers conferred under Section 11 read with Section 11A of the Securities and Exchange Board of India Act, 1992.
All stock exchanges are advised to ensure compliance with this circular and carry out the amendments in their Listing Agreement as per the Annexure to this circular.
Sub-clause (ii)(c) of Clause 40A, shall be substituted by “(c) sale of shares held by promoters through the secondary market in terms of SEBI circular CIR/MRD/DP/05/2012 dated February 1, 2012; or”
After sub-clause (ii)(c) of Clause 40A, the following sub-clause shall be inserted: “(d) Institutional Placement Programme (IPP) in terms of Chapter VIIIA of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended.”
‘The proviso’ and ‘Explanation to sub-clause (ii)(c) of Clause 40A, shall be omitted.
In Clause 43, a new sub-clause (d) shall be inserted: “(d) The statement referred to in clause (a) shall also be given for warrants issued along with public or rights issue of specified securities”.
In Clause 43A, a new sub-clause (5) shall be inserted: “(5) The statement referred to in clause (1) shall also be given for warrants issued along with public or rights issue of specified securities”.
Source: SecMarx — Amendments to the Equity Listing Agreement. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.