26th February, 2018
Sub: Manner of achieving minimum public shareholding
To all Listed Companies
Attention of such aforesaid listed companies are drawn to SEBI Circular Ref. No. SEBI/HO/CFD/CMD/CIR/P/43/2018 dated February 22, 2018 (copy available at CSE web-site at www.cse-india.com and SEBI web-site at www.sebi.com) wherein
As per point number 1 of the aforesaid SEBI Circular “Please refer to Circular No. CIR/CFD/CMD/14/2015 dated November 30, 2015 on the captioned subject, which allowed for various methods that may be used by a listed entity to achieve compliance with the minimum public shareholding requirements mandated under rules 19(2) (b) and 19A of the Securities Contracts (Regulation) Rules, 1957 (“the SCRR”) read with regulation 38 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.”
Further in the said Circular it is also mentioned that with a view to further facilitate listed entities to comply with the minimum public shareholding requirements, the following additional methods are allowed:
a) Open market sale
b) Qualified Institutions Placement
As per this Circular, this Circular is issued in exercise of the powers conferred under sections 11 and 11A of the Securities and Exchange Board of India Act, 1992 read with regulations 38 and 101(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and shall supersede the Circular No. CIR/CFD/CMD/14/2015 dated November 30, 2015.
This is for information and necessary action.
CS Chandrani Datta