Change of Name by Listed Companies
Summary
SEBI modifies the criteria for listed companies seeking a change of name to accommodate businesses with longer gestation periods. The regulation now allows compliance based on either revenue contribution or investment in fixed assets and advances related to the new activity. Stock exchanges are instructed to amend their bye-laws and ensure listed companies submit an auditor's certificate to confirm compliance.
Text
At least 50% of its total revenue in the preceding 1 year period should have been accounted for by the new activity suggested by the new name Or The amount invested in the new activity/project (Fixed Assets + Advances + Works In Progress) is atleast 50% of the assets of the company. The ‘Advances’ shall include only those extended to contractors and suppliers towards execution of project, specific to new activity as reflected in the new name.
To confirm the compliance of the aforesaid provision 2.2, the company shall submit auditor’s certificate to the exchange.
implement the above by making necessary amendments to the bye-laws and Listing Agreement, as applicable;
to bring the provisions of this circular to the notice of the listed companies and member brokers/ clearing members and also to put up the same on the website for easy access to the investors;
communicate to SEBI the status of the implementation of the provisions of this circular and the action taken in this regard in the Monthly Development Report.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Change of Name by Listed Companies. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.