Name change by listed companies

SEBI has vide its circular dated 16th June 2011 amended the requirements to be complied with in the case of name change by listed entities. Hitherto 50% of the revenue for the last 1 year should have been accounted for from the new activity before name change was allowed. However in the case of long projects where the gestation period is longer, this requirement was difficult to be met with. Hence SEBI has modified the stipulations to state that amount invested in the new activity in the form of fixed assets, advances and work in progress should be at least 50% of the total assets of the company. A clarification has been added that advances should only be in respect of the new activity. The company needs to submit auditors certificate to the exchange showing compliance of the stipulations. It may be added that the earlier condition of 50% of revenue has been retained along with the new stipulation. So company opting for name change has option to fulfill any one of the conditions. SEBI circular is available on its website here