The Securities and Exchange Board of India (“SEBI”) has issued a notification dated August 7, 2020 notifying the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)(Second Amendment) Regulations, 2020 (“Amendment Regulations”).
The Amendment Regulations amend regulation 42 of the LODR that deals with record date/date of closure of transfer books. Under regulation 42, the listed entity is required to intimate the record date for declaration of dividend, rights issue, bonus issue etc. to the stock exchanges where it is listed. Pursuant to the amendment, apart from the stock exchanges where it is listed, intimation is also required to be given to stock exchanges where stock derivatives are available on the stock of the listed entity or where listed entity’s stock form part of an index on which derivatives are available. Consequently, the existing clause (e) under regulation 42(1) that stated “corporate actions like mergers, de-mergers, splits and bonus shares, where stock derivatives are available on the stock of listed entity or where listed entity's stocks form part of an index on which derivatives are available” has been replaced with the following “corporate actions like mergers, de-mergers, splits, etc.”
Please find a copy of the Amendment Regulations here.
This update has been contributed by Adity Chaudhury (Partner) and Aditi Gupta (Associate).
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