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New promoter norms may bring down the liability for some stakeholders

Clarity on existing definitions of ownership could also be under review, believe experts

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Promoter stakeholders

Sachin P Mampatta Mumbai
The Securities and Exchange Board of India’s (Sebi’s) recent talk of shifting from the concept of promoters may bring down the liability for some stakeholders.  
 
Those having low shareholding may well see their liability fall if the globally-accepted norms are followed in India. 

Clarity on existing definitions of ownership could also be under review, believe experts.

Sebi Chairman Ajay Tyagi had said that the old concept of ‘promoter’ may need to be substituted with ‘controlling shareholder’. This is more prevalent globally.

“Keeping in mind the changing realities of the global and Indian markets, we are examining the relevance of the concept of promoter

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First Published: Sep 27 2019 | 9:33 PM IST

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