SECURITIES CONTRACTS (REGULATION)(AMENDMENT) RULES, 2018 FOR LISTED COMPANIES AFTER RESOLUTION PLAN UNDER IB CODE 2016

SECURITIES CONTRACTS (REGULATION)(AMENDMENT) RULES, 2018 Reference G.S.R. 675(E)  dated 24th July 2018 issued by Ministry of Finance In the Securities Contracts (Regulation) Rules, 1957, in rule 19A, after sub-rule (4), the following sub-rule shall be inserted, namely:– ACTION TO BE TAKEN BY LISTED COMPANIES WHEN PUBLIC SHAREHOLDING FALLS BELOW 25% DUE TO RESOLUTION PLAN UNDER IB CODE 2016 “(5) Where the public shareholding in a listed company falls below twenty-five per cent, as a result of implementation of the resolution plan approved under section 31 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), such company shall bring the public shareholding to twenty-five per cent within a maximum period of three years from the date of such fall, in the manner specified by the Securities and Exchange Board of India: ACTION TO BE TAKEN WHEN PUBLIC SHAREHOLDING FALLS BELOW 10% Provided that, if the public shareholding falls below ten per cent, the same shall be increased to at least ten per cent, within a maximum period of eighteen months from the date of such fall, in the manner specified by the Securities and Exchange Board of India.