Promoters daughters are immediate relatives and part of promoter group irrespective of marriage or living a separate life or no involvement in management – SEBI
SEBI replying to a informal guidance has stated that by virtue of the definition of ‘promoter group’ under SEBI (LODR) Regulations, 2015 (SEBI LODR Regulations), the daughters of the promoters are immediate relatives and are a part of the promoter group irrespective of the fact that they are married and living a separate life or that they do not have any involvement in the management of the Company.
It was also stated that by virtue of Regulation 31A (6) of SEBI LODR Regulations, in case of gift of shares held by a promoter/ person belonging to the promoter group, immediately on such event, the recipient of such shares shall be classified as a promoter/ person belonging to the promoter group, as applicable.
Further, the conditions for re-classification of promoter group to public and the procedure thereof are specified under regulation 31A of the SEBI LODR Regulations. Regulation 31A(3)(b)(i) specifies that promoter(s) seeking re-classification and persons related to the promoter(s) seeking re-classification shall not together hold more than 10% of the total voting rights in the listed entity.
In the instant case, the Chairman of the company wanted to gift some of his shares to two of his married daughters who were living independent lives and did not have any part or involvement in the management of the company. The daughters were not holding any shares of the Company and as such their name did not form part of the Promoter & Promoter Group category as per shareholding pattern filed by the Company with Stock exchanges under Regulation 31 of SEBI LODR Regulations.
However, the daughters desired that their names to be reclassified from the ‘Promoter & Promoter group’ category to ‘Public category ‘ as they did not have any Involvement in the management of the Company and were married and living separate lives and that they desired not to be bound by the restriction of trading window applicable on the ‘Promoter & Promoter group’.
State Bank of India in its General Meeting of the Shareholders elected four Directors to the Central Board. The meeting…
Voluntary declaration of additional income by increasing WIP was not proper, as assessee will take the additional benefit in the…
Cash payment for purchase of land or property cannot be treated as violation of provisions of section 269SS or 269T…
Income Tax Department has released excel Utility for e-filing ITR-1 and ITR-4 for AY 2026-27 Excel utilities of ITR-1 and…
Amount of money received as Mediclaim not deductible from an award passed by MACT under the head of medical expenses.…
Location of the assessing officer who passed the order shall decide the jurisdiction of the Bench of the Tribunal In…