In a notification dated 18 November 2014, the Central Government, in exercise of powers conferred by Section 30 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), hereby makes the Securities Contracts (Regulation) Third Amendment Rules, 2014 to further amend the Securities Contracts (Regulation) Rules,1957.
- The Rule substitutes sub-rule (2), clause (b) of the Rule 19 of the Securities Contracts (Regulation) Rules, 1957 with the following clause:
“(b) (i) at least twenty five per cent. of each class or kind of equity shares or debenture convertible into equity shares issued by the company, if the post issue capital of the company calculated at offer price is less than or equal to one thousand six hundred crore rupees;
(ii) at least such percentage of each class or kind of equity shares or debentures convertible into equity shares issued by the company equivalent to the value of four hundred crore rupees, if the post issue capital of the company calculated at offer price is more than one thousand six hundred crore rupees but less than or equal to four thousand crore rupees;
(iii) at least ten per cent. of each class or kind of equity shares or debentures convertible into equity shares issued by the company, if the post issue capital of the company calculated at offer price is above four thousand crore rupees:
Provided that the company referred to in sub-clause (ii) or sub-clause (iii), shall increase its public shareholding to at least twenty five per cent. within a period of three years from the date of listing of the securities, in the manner specified by the Securities and Exchange Board of India:
Provided further that this clause shall not apply to a company whose draft offer document is pending with the Securities and Exchange Board of India on or before the commencement of the Securities Contracts (Regulation) Third Amendment Rules, 2014, if it satisfies the conditions prescribed in clause (b) of sub-rule (2) of rule 19 of the Securities Contracts (Regulation) Rules, 1956 as existed prior to the date of such commencement.”
- The Rule omits sub-rule (2), clause (c) of the Rule 19 of the Securities Contracts (Regulation) Rules, 1957.
- The Rule further omits the words, brackets and figures “sub-clause (ii) of” in the Explanation to sub-rule (1), Rule 19A of the Securities Contracts (Regulation) Rules, 1957.
-Ministry of Finance