The Securities and Exchange Board of India (Sebi) today mandated all listed companies to disclose within 10 days any change in their shareholding pattern. Firms coming out with a public offer will have to inform so a day before going public.
“It has been decided that in all cases where the change in capital structure due to such restructuring exceeds plus or minus two per cent of the paid share capital of the entities, the listed entities shall file a revised shareholding pattern with the exchanges within 10 days of the allotment of shares,” Sebi said in a circular.
It also said that companies will have to disclose promoters’ holding and public holding separately in case they were raising funds through depository receipts. It amended the Equity Listing Agreement, an agreement between itself and the companies listed on bourses. Companies will have to follow the amendment with immediate effect.
“It is a welcome move. Including these norms in the Agreement will ensure greater transparency, corporate governance and protect interest of minority shareholders,” SMC Capitals, Head of Research J Thunuguntla said.
