Tag: Listing Regulations
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Ten Years of LODR: The Journey from “Minimum Principles” to “Maximum Prescriptions”
[Bharat Vasani is Senior Advisor – Corporate laws and Ayush Lahoti and Maharshi Shah are Associates at the Mumbai office of Cyril Amarchand Mangaldas. An earlier version of this post was published on the Cyril Amarchand Mangaldas Blog] The enactment of the SEBI Act in 1992 (“SEBI Act”), followed by the amendment of section 21 of the Securities Contracts (Regulation) Act, 1956 (“SCRA”),
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Understanding the Dichotomy between Materiality and Price Sensitivity: Where to Draw the Line?
[Anuj Bansal is a 5th year B.A. L.L.B. (Hons.) student at the Dr. Ram Manohar Lohiya National Law University, Lucknow] The approach of the securities law adjudicatory bodies, as observable through the orders on insider trading, has often given rise to an interesting issue of much academic relevance: what distinguishes ‘price sensitive information’ under SEBI
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SEBI: Rules on Profit Sharing Arrangements Apply to Unlisted Subsidiaries
The rules introduced earlier this year by the Securities and Exchange Board of India (“SEBI”) that impose restrictions on profit sharing arrangements in respect of listed companies have already provoked interpretational controversies. In an earlier informal guidance (relating to Accelya Kale Solutions Limited), SEBI clarified profit sharing arrangements that involved employees being provided benefits that
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SEBI Informal Guidance on Profit Sharing Arrangements
Last year, the Securities and Exchange Board of India (“SEBI”) clamped down on upside sharing arrangements between promoters or senior management of listed companies on the one hand and private equity investors on the other. Accordingly, the securities regulator amended the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “LODR Regulations”) to introduce regulation
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Listing of Stock Exchanges and Addressing Conflicts of Interests
A few years ago, we had discussed possible issues that arise out of the commercial operations of a stock exchange. While an exchange is a profit-making institution and is required to act in the interests of its shareholders, it also carries out a regulatory role in selecting companies that are to be listed on it
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Enhanced Disclosure Requirements for Listed Companies
SEBI this week issued a series of circulars pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), which seek to streamline and enhance the disclosure obligations of listed companies. The three different circulars are briefly discussed below. Shareholder Voting Results In the case of shareholders’ meetings, SEBI has prescribed that a
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A Material Mistake in Disclosure Obligations
The newly notified SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which would take effect on December 1, 2015 remove materiality as a relevant factor for disclosures of “acquisitions” by listed companies. The term “acquisitions” has been defined to mean acquisition of 5% in any other company and a movement of 2% in shareholding thereafter,
