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SEBI on March 01, 2021 has issued Master Circular on Surveillance of Securities Market. In light of representations received from various companies and in consultation with Stock Exchanges, it has been decided that the securities of all companies shall be traded in the normal segment of the exchange if and only if, the company has achieved at least 50% of non-promoters holding in dematerialized form by October 31st 2010. While computing the requirement of minimum 50% shareholding of non- promoters in demat form in a company, the government holding in non-promoter category may be excluded. Following exemptions shall be taken into consideration while arriving at compliance with promoter(s) holding in demat form. Such exemption shall be applicable in cases where:-
- Promoter(s) have sold their shares in physical mode and such shares have not been lodged for transfer with the company;
- Matters concerning part/entire shareholding of promoters/promoter group are sub-judice before any Court/Tribunal;
- Shares cannot be converted into demat form due to death of any promoter(s);
- Shares allotted to promoter(s) that await final approval for listing from stock exchange and such pendency is less than 30 days or shares that upon receipt of final listing approval from stock exchange are pending conversion to demat and such pendency is less than 15 days;