Amendments to Listing Agreement

SEBI has carried out an amendment to the equity listing agreement by providing for Institutional Placement Program by promoters wherein they offload excess holdings held by them in excess of 75% shareholding limit in their respective companies. Through this amendment, the provisions of IPP has been sought to be brought into the listing agreement because it is the listing agreement that governs the relationship between the listed companies and stock exchanges. Clause 40A has accordingly been suitably amended.

Another amendment is in clauses 43 & 43A wherein listed companies have been required to disclose utilisation of funds arising out conversion/ exercise of warrants issued along with public or rights issue.

Copy of the SEBI circular can be accessed here