Sebi tweaks disclosure norms for shareholding patterns to improve clarity

Markets regulator Sebi on Thursday introduced modifications to the disclosure requirements for shareholding patterns in a bid to improve the clarity.

Under the revised format, listed entities are required to disclose details of non-disposal undertakings (NDU), other encumbrances, and the total number of shares pledged or otherwise encumbered, including NDUs, Sebi said in a circular. 

Additionally, a new column has been added to capture the total number of shares on a fully diluted basis, including warrants, ESOPs, and convertible securities.

Furthermore, a footnote in the revised format clarifies that promoter and promoter group entities with "nil" shareholding will also be reflected.

These new requirements, which will come into effect from the quarter ending June 30, 2025, aimed at providing further clarity and transparency in the disclosure of shareholding pattern to the investors in the securities market.

Sebi has directed stock exchanges to inform listed companies and update the relevant regulations for implementation. Depositories are also required to modify their systems to incorporate these changes.

The changes aim to improve the clarity of shareholder disclosures and align the practices with the evolving needs of the securities market.