SEBI Amended Equity Listing Agreement

The market regulator Securities and Exchange Board of India (SEBI) in December 2010 amended the Equity Listing Agreement, an agreement between the SEBI and companies listed on bourses. SEBI made certain amendments in the equity listing agreements of companies regarding disclosures. SEBI specified that companies going public need to announce their revised shareholding pattern at least one day prior to the day of listing. In all cases where the change in capital structure due to such restructuring exceeds 2 per cent of the paid share capital of the entities, the listed entities will have file a revised shareholding pattern with the stock exchanges within 10 days of the allotment of shares. SEBI directed that companies will have to disclose promoters’ holding and public holding separately in case they are raising funds through depository receipts. The companies have been asked to announce in advance a fixed date for payment of dividends and credit of bonus shares. The companies as per the amendment are required to maintain a functional website giving details of all basic information about the firm. Also, SEBI asked companies to disclose details of any agreements with media firms on their websites and notify the stock exchanges.