Securities Contracts (Regulation)(Amendment) Rules, 2021

On June 18, 2021, the Central Government Securities Contracts (Regulation) (Amendment) Rules, 2021 to amend the Securities Contracts (Regulation) Rules, 1957, namely

In the Securities Contracts (Regulation) Rules, 1957,

  • In Rule 19 relating to Requirements with respect to the listing of securities on a recognised stock exchange, in subrule (2)(b)(iii),
    1. after the words ―four thousand crore rupees, the words ―but less than or equal to one lakh crore rupees shall be inserted;
    2. after subclause (iii) and before the provisos, the following shall be inserted, namely

“(iv) 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 five thousand crore rupees and at least five per cent of each such 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 above one lakh crore rupees;

Provided that the company referred to in this subclause (iv) shall increase its public shareholding to at least ten per cent within a period of two years and at least twentyfive per cent. within a period of five years, from the date of listing of the securities, in the manner specified by the Securities and Exchange Board of India;”

  • In rule 19A relating to Continuous Listing Requirement, in subrule (5)(i)
    1. in the proviso, for the word ― eighteen, the word ―twelve shall be substituted;
    2. the following proviso shall be inserted, namely,

“Provided further that, every listed company shall maintain public shareholding of at least five per cent. as a result of implementation of the resolution plan approved under section 31 of the Insolvency and Bankruptcy Code, 2016.”

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