SEBI revises disclosure norms for listing of securities

16 Dec 2010

Companies which seek listing of their securities subsequent to an initial public offer (IPO) should mandatorily submit their shareholding pattern one day prior to the date of listing, in order to ensure public dissemination of updated shareholding pattern, the Securities and Exchange Board of India (SEBI) said today.

The stock exchanges in turn should upload this on its websites before commencement of trading in the said securities, SEBI said in a circular released today.

This, SEBI said, would ensure public dissemination of the shareholding pattern pursuant to capital restructuring in listed entities.

Wherein the change in capital structure due to such restructuring exceeds (+/-) 2 per cent of the paid-up share capital of the entities, the listed entities should file a revised shareholding pattern with the stock exchanges within 10 days from the date of allotment of shares pursuant to such change in the capital structure, as per SEBI-prescribed format along with a footnote explaining the reasons for the revised shareholding pattern.

The stock exchanges should upload the same on their websites immediately. 
 
Where a company is required to achieve a prescribed level of public shareholding, it should issue shares to public through prospectus or offer to sell shares held by promoters to public through prospectus or through the secondary market. 
 
For companies which had in the past issued shares in physical mode and where such share certificates remain unclaimed by the shareholders due to insufficient/incorrect information or for any other reason, SEBI has mandated companies to have a pre-announced fixed pay date for payment of dividends and for credit of bonus shares in order to enable investors manage their cash/securities flows efficiently and to enhance process transparency.

Listed companies should also disclose details of such agreements on their websites and also notify the stock exchange of the same for public dissemination.

Also, all listed entities should mandatorily maintain a website to ensure/enhance public dissemination of all basic information about them, duly updated for all statutory filings, including agreements entered into with media companies, if any.