Friday, March 30, 2012

SEBI grants exemptions from 100% promoter(s) holding in demat form


Exemptions from 100% promoter(s) holding in demat form
SEBI asked the listed companies to make 100% of their promoter(s) share holdings in demat form through SEBI circulars SEBI/Cir/ISD/3/2011  dated June 17, 2011 and SEBI/Cir/ISD/ 05/2011 dated September 30, 2011.
SEBI after considering the representations from various companies  regarding the  issues relating to dematerialization of holdings of promoters and have accordingly sought certain exemptions from compliance with these circulars asking to make 100% promoter(s) holdings  in demat form. Such exemption shall be applicable to:
1.   Promoter(s) have sold their shares in physical mode and such shares have not been lodged for transfer with the company; or
2.   Matters concerning part/entire shareholding of promoters/promoter group are sub judice before any Court/Tribunal; or
3.   Shares cannot be converted into demat form due to death of any promoter(s);
4.   Shares allotted to promoter(s) that await final approval for listing from stock exchange and such pendency is less than 30 days or shares that upon receipt of final listing approval from stock exchange are pending conversion to demat and such pendency is less than 15 days.
The Companies have to approach the concerned stock exchanges with documentary evidence for availing such exemptions. SEBI says this circular (SEBI/Cir/ISD/ 1 /2012) shall come in to effect from April 30, 2012.
circular is available on SEBI website

A question for you, can you pl. answer

Is it possible to issue "bonus debentures"?

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