Disclosure of reasons for encumbrance by promoter of listed companies

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....larly when significant shareholding by promoter along with persons acting in concert (PACs) with him is encumbered, it has been decided to prescribe additional disclosure requirements under Regulation 31(1) read with Regulation 28(3) of Takeover Regulations, as follows, - i. The promoter of every listed company shall specifically disclose detailed reasons for encumbrance if the combined encumbrance by the promoter along with PACs with him equals or exceeds: a) 50% of their shareholding in the company; or b) 20% of the total share capital of the company, in the format provided at Annexure - II of this circular, within two working days from the creation of such encumbrance. Such disclosures will be warrante....

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....ted companies and their promoters and also disseminate the same on their website; and ii. communicate to SEBI the status of implementation of the provisions of this circular through monthly development report. 5. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and to protect the interests of the investors in securities markets. 6. This circular is available on SEBI website at www.sebi.gov.in at "Legal → Circulars". Yours faithfully, Rajesh Gujjar General Manager +91 22 2644 9232 [email protected]   Annexure - II Format for disclosure of reasons for encumbrance (In addition to Annexure - I prescribed b....