NOTICE
June 29,
2011
CSE/Notices/SEBI/2011/007
All Listed Companies and
Trading Members are hereby informed that the Exchange has received a Circular
from SEBI vide Ref. No.CIR/MRD/DP/07/2011, dated June 16, 2011 regarding Change
of name by Listed Companies. The
contents of the said Circular are given here under for information of the
listed companies and trading members.
Quote : -
CIR/MRD/DP/ 07 /2011 June 16, 2011
To,
All Stock Exchanges
Dear Sir/Madam,
Sub: Change of Name by Listed
Companies
1. Please refer to SEBI Circulars No. SMDRP/Policy/Cir-8/99 dated April 26, 1999 and No. SEBI/MRD/Policy/AT/Cir-20/2004 dated April 30, 2004 on the captioned subject matter.
2. The aforementioned SEBI circular dated April 30, 2004 required all listed companies seeking change of name to comply inter alia with the following provision:
2.2. 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.
3. It is observed from the representations received from few companies and feedback received from the Stock Exchanges that the companies, where the gestation period of the business is usually longer and the revenue stream often delayed, find it difficult to comply with the aforesaid provision.
4. In view of the above, it is decided to modify the para 2.2 of the forementioned circular as under:
2.2. 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.
5. All the Stock
Exchanges are advised to:-
5.1. implement the
above by making necessary amendments to the bye-laws and Listing Agreement, as
applicable;
5.2. 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; and
5.3. 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.
6. 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.
This circular is available on SEBI website at www.sebi.gov.in.
Yours faithfully,
Harini Balaji
Deputy General Manager
022-26449372
Unquote
:-
All
listed companies & Trading Members are requested to note the aforesaid guideline of SEBI and
comply accordingly.
MAV Raju
DGM (HR & Admn.)