Mandatory listing by cos with equity shares with superior voting rights to promoters

Mandatory listing of shares on recognised stock exchange by companies having equity shares with superior voting rights to its promoters or founders

MINISTRY OF FINANCE
(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 19th March, 2020

G.S.R. 189(E).—In exercise of the powers conferred by section 30 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Central Government hereby makes the following rules further to amend the Securities Contracts (Regulation) Rules, 1957, namely:—

1.Short title and commencement. –(1) These rules may be called as Securities Contracts (Regulation) (Amendment) Rules, 2020.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Securities Contracts (Regulation) Rules, 1957, in rule 19,

(a) in sub-rule (2), in clause (b), after the second proviso, the following proviso shall be inserted, namely:—

Provided also that the applicant company, who has issued equity shares having superior voting rights to its promoters or founders and is seeking listing of its ordinary shares for offering to the public under this rule and the regulations made by the Securities and Exchange Board of India in this regard, shall mandatorily list its equity shares having superior voting rights at the same recognized stock exchange along with the ordinary shares being offered to the public;

(b) after sub-rule (7), the following sub-rule shall be inserted, namely :-

(8) Not withstanding anything contained in this rule, the minimum offer and allotment requirements as prescribed under clause (b) of sub-rule (2) shall not be applicable to the listing of such equity shares having superior voting rights issued to the promoters or founders as the case may be, in cases where the applicant company is seeking listing of its ordinary shares for offering to the public in accordance with the provisions of this rule and the regulations made by the Securities and Exchange Board of India in this regard.

[F. No. 01/09/2019-PM (Part)]
A. M. BAJAJ, Jt. Secy.(Financial Markets)

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3 vide notification number S.R.O. 576, dated the 21st February, 1957 and subsequently amended vide notification numbers as under:

(1) G.S.R.1096, dated the 14th July, 1967;
(2) G.S.R. 685, dated the 3rd June, 1972;
(3) G.S.R. 959, dated the 8th August, 1972;
(4) G.S.R. 2641, dated the1st November, 1975;
(5) G.S.R. 1083, dated the 11th November, 1985;
(6) G.S.R. 666(E), dated the 20th July, 1987;
(7) G.S.R. 1070(E), dated the 15th November, 1988;
(8) G.S.R. 870(E), dated the 13th November, 1992;
(9) G.S.R. 617(E), dated the 20th September, 1993
(10) G.S.R. 749(E), dated the 12th October, 1994;
(11) G.S.R. 790(E), dated the 7th November, 1994;
(12) G.S.R. 121(E), dated the 9th March, 1995;
(13) G.S.R. 291(E), dated the 27th March, 1995;
(14) G.S.R. 581(E), dated the 23rd December, 1996;
(15) G.S.R. 654(E), dated the 8th August, 2000;
(16) G.S.R. 655(E), dated the 8th August, 2000;
(17) G.S.R. 415(E), dated the 7th June, 2001;
(18) G.S.R. 696(E), dated the 28th August, 2003;
(19) G.S.R. 395(E), dated the 10th June, 2009;
(20) G.S.R. 469(E), dated the 4th June, 2010;
(21) G.S.R. 662(E), dated the 9th August, 2010;
(22) G.S.R.705 (E), dated the 24th October, 2013;
(23) G.S.R. 21(E), dated the 16th January, 2014;
(24) G.S.R.611 (E), dated the 22nd August, 2014;
(25)G.S.R.682 (E), dated the 19th September, 2014;
(26) G.S.R. 819(E), dated the 18th November, 2014;
(27) G.S.R. 125(E), dated the 25th February, 2015;
(28) G.S.R. 268(E), dated the 20th March, 2017;
(29) G.S.R. 664(E), dated the 27th June, 2017;
(30) G.S.R. 822(E), dated the 3rd July, 2017
(31) G.S.R.675(E), dated the 25thJuly, 2018 and
(32) G.S.R. 738 (E), dated 3rd August, 2018.

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