Amendments to Equity Listing Agreement

On April 24, 2009, SEBI issued a circular amending certain provisions of the Equity Listing Agreement that all listed companies are required to comply with. The key amendments are listed below:

– A uniform procedure has been created for dealing with shares that lay unclaimed after public issues;

– The notice period for all corporate actions such as dividend, bonus, etc. has been uniformly reduced for all scripts, whether in demat or physical, whether in futures & options segment or not. The notice period for record date has been reduced to 7 working days and for board meeting to 2 working days;

– The declaration of dividend by companies is now mandated on a per-share basis. This is to avoid inconsistencies created due to differences in par value of shares issued by companies; and

– The format for disclosure of shareholding pattern under Clause 35 of the listing agreement has been amended to reflect distinct patterns for each class of shares separately.

About the author

Umakanth Varottil

Umakanth Varottil is an Associate Professor at the Faculty of Law, National University of Singapore. He specializes in corporate law and governance, mergers and acquisitions and cross-border investments. Prior to his foray into academia, Umakanth was a partner at a pre-eminent law firm in India.

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