Relaxation
from the applicability
of SEBI Circular
dated October 10,
2017 on non-compliance with the Minimum Public
Shareholding (MPS) requirements
SEBI vide Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/18
dated May 14 May, 2020 states:
1.SEBI circular No. CFD/CMD/CIR/P/2017/115 dated
October 10, 2017 lays down the procedure
to be followed by the recognized stock exchanges/depositories with respect to
MPS non-compliant listed entities, their promoters and directors, including
levy offences, freeze of promoter holding etc.
2.After taking into consideration requests received
from listed entities and industry bodies as well as considering the prevailing
business and market conditions, it has been decided to grant relaxation from the
applicability of the October 10, 2017 circular.
Accordingly, the stipulations of the aforesaid October
10, 2017 SEBI circular are relaxed for listed entities for whom the deadline to
comply with MPS requirements falls between the period from March 1, 2020 to August
31, 2020.
Recognized Stock
Exchanges are advised not
to take any penal
action as envisaged in
the October 10, 2017 circular
against such entities in
case of non-compliance during
the said period. Penal
actions, if any, initiated by Stock
Exchanges from March 1,
2020 till date for
non-compliance of MPS requirements
by such listed entities may be withdrawn.
3.This
Circular shall come
into force with
immediate effect. The
Stock Exchanges are
advised to bring the provisions
of this circular
to the notice
of all listed
entities that have
issued specified securities and
also disseminate on their websites.
4.The Circular is issued in exercise of the powers
conferred under Section 11(1) of the Securities and Exchange Board of India
Act, 1992 read with regulations97, 98, 101 and 102 of the LODR.
5.This Circular is available at www.sebi.gov.inunder
the link “Legal-Circulars”
DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE
INFORMATION EXISTING AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE
LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A
KNOWLEDGE SHARING INITIATIVE.
THE AUTHOR – CS DEEPAK SETH (ASSOCIATE PARTNER HELPINGHANDS
PROFESSIONALS LLP) AND CAN BE REACHED AT CONTACTHHPRO@GMAIL.COM OR
9910248911.
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