The Securities and Exchange Board of India (SEBI) has notified the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2020. The Regulations were notified accordingly on 5th August, 2020 and are effective immediately.
This amendment makes changes to Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Regulation 42 deals with Record Date or Date of Closure of Transfer Books.
Notably, in order to determine whether a shareholder is qualified for benefits on a particular date, a listed entity fixes a record date. The shareholders that are qualified will receive benefits like dividend, bonus shares, rights issue etc., announced by the listed entity.
A listed entity was previously required to intimate the record date to the Stock Exchange, merely where the entity was listed. However by virtue of this amendment a listed entity is required to make such intimation not only where it is listed on the stock exchange but also where stock derivatives are available on the stock of the listed entity or where listed entity’s stock form part of an index on which derivatives are available.
Further, the amendment also modifies one of the purposes for which such intimation would be required.
