Monday, 25 May 2015

NEW INSIDERS TRADING NORMS, NEW LISTING REGULATIONS and AMENDMENT IN DELISTING NORMS

NEW INSIDERS TRADING NORMS:
The SEBI has recently replaced almost two decade old SEBI (Prohibition of Insider Trading) Regulations, 1992 with a new regulation in place of existing regulation.
The new regulations put in place and strengthen the legal and enforcement framework, align Indian regime with international practices, provide clarity with respect to the definitions and concepts, and facilitate legitimate business transactions. The details are available on the website of SEBI.
NEW LISTING REGULATIONS:
On 19th November 2014, SEBI has come out SEBI (Listing Obligations & Disclosure Requirements) Regulations 2014, with comprehensive listing regulations to consolidate listing obligations and disclosure requirements for listed entities across all the below mentioned securities at one place. This would also facilitate better compliance and investor protection.
This Regulation would consolidate and streamline the provisions of existing listing agreements thereby ensuring better enforceability.
AMENDMENT IN DELISTING NORMS:
The following changes have been made to SEBI (Delisting of Equity Shares) Regulations, 2009:
1. The delisting shall be considered successful only when
a. the shareholding of the acquirer together with the shares tendered by public shareholders reaches 90% of the total share capital of the company and
b. if atleast 25% of the number of public shareholders, holding shares in dematerialised mode as on the date of the Board meeting which approves the delisting proposal, tender in the reverse book building process.
2. The offer price determined through Reverse Book Building shall be the price at which the shareholding of the promoter, after including the shareholding of the public shareholders who have tendered their shares, reaches the threshold limit of 90%.

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