The Ministry of Finance vide its Notification dated 19th March 2020 has brought significant change in the Securities Contracts (Regulation) Rules 1957 by allowing promoters and founders of companies who hold superior voting shares to list on stock exchanges in the same way as ordinary shares.
The Amendment is brought under rule 19 which deals with Requirements for listing of securities on a recognized stock exchange, under which after sub-rule 2 in clause b the following proviso has been inserted:
“The applicant company, who has issued equity shares having superior voting rights to its promoters or founders and is seeking listing of its ordinary shares for offering to the public under this rule and the regulations made by the Securities and Exchange Board of India in this regard, shall mandatorily list its equity shares having superior voting rights at the same recognized stock exchange along with the ordinary shares being offered to the public.
Further, it added that the minimum offer and allotment requirements shall not be applicable to the listing of such equity shares having superior voting rights.
Click here to read the Notification.