Shareholding of promoter / promoter group to be in dematerialized mode
Summary
SEBI mandates that companies must achieve 100% dematerialization of promoter and promoter group shareholding by the quarter ended September 2011 to trade in the normal segment. Companies failing to meet this criterion are restricted to trading in the trade-for-trade segment. Stock Exchanges are required to implement necessary systems, amend bye-laws, and report implementation status to SEBI.
Text
SEBI had vide SEBI/Cir/ISD/1/2010 dated September 02, 2010 issued a circular on “trading rules and shareholding in dematerialized mode”... mandated securities of companies to be traded in normal segment, if and only if, the company has achieved atleast 50% non-promoter shareholding in dematerialized form
securities of companies shall be traded in the normal segment of the exchange if and only if, the company has achieved 100% of promoter’s and promoter group’s shareholding in dematerialized form latest by the quarter ended September 2011
In all cases, wherein the companies do not satisfy the above criteria, the trading in securities of such companies shall take place in trade for trade segment.
For the above purpose the exchanges shall take the latest shareholding pattern as required to be submitted by the listed companies with exchanges in pursuance to the Listing agreement as of the preceding quarter or of any subsequent date.
put in place the adequate systems and issue the necessary guidelines for implementing the above decision.
make necessary amendments to the relevant bye-laws, rules and regulations as applicable for the implementation of the above decision immediately.
bring the provisions of this circular to the notice of the listed companies/issuers and member brokers of the Exchange and also to disseminate the same on the website.
communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report.
This circular is issued in exercise of powers conferred by sub-section (1) of Section 11 of the Securities and Exchange Board of India Act, 1992
Source: SecMarx — Shareholding of promoter / promoter group to be in dematerialized mode. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.