Sunday, April 26, 2009

Amendments to Equity Listing Agreement

On April 24, 2009, SEBI issued a circular amending certain provisions of the Equity Listing Agreement that all listed companies are required to comply with. The key amendments are listed below:

- A uniform procedure has been created for dealing with shares that lay unclaimed after public issues;

- The notice period for all corporate actions such as dividend, bonus, etc. has been uniformly reduced for all scripts, whether in demat or physical, whether in futures & options segment or not. The notice period for record date has been reduced to 7 working days and for board meeting to 2 working days;

- The declaration of dividend by companies is now mandated on a per-share basis. This is to avoid inconsistencies created due to differences in par value of shares issued by companies; and

- The format for disclosure of shareholding pattern under Clause 35 of the listing agreement has been amended to reflect distinct patterns for each class of shares separately.

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