The Ministry of Finance on 18th June 2021 has published the Securities Contracts (Regulation) (Amendment) Rules, 2021 to further amend the Securities Contracts (Regulation) Rules, 1957.
As per the amendment under rule 19(2) an applicant company shall satisfy the stock exchange that its articles of association provide for the following among others, that the company shall use a common form of transfer and the fully paid shares will be free from all lien etc
The minimum offer and allotment to the public in terms of an offer document shall be, at least such percentage of each class or kind of equity shares or debentures convertible into equity shares issued by the company equivalent to the value of five thousand crore rupees and at least five per cent of each such class or kind of equity shares or debenture convertible into equity shares issued by the company, if the post issue capital of the company calculated at offer price is above one lakh crore rupees; Provided that the company referred to in this sub-clause (iv) shall increase its public shareholding to at least ten per cent within a period of two years and at least twenty-five per cent. within a period of five years, from the date of listing of the securities, in the manner specified by the Securities and Exchange Board of India.
