SEBI Emerge with a new format for disclosure of shareholding patterns

With an aim to provide further clarity and transparency in the disclosure of shareholding patterns to investors, Sebi on Thursday came out with a new format for disclosing the shareholding pattern of the public shareholders.

Additionally, the regulator has stated in a circular that all listed businesses will be required to publish information on foreign ownership limits in a defined format.

The names of the owners who own 1% or more of the shares of the listed firm must be revealed in the disclosure of public holdings. If they are accessible, the names of the shareholders who are people acting jointly will also be revealed individually.

New formats for disclosing the shareholding patterns of public shareholders and non-promoter non-public shareholders were also released by Sebi.

The Securities and Exchange Commission (Sebi) has included a new column for the sub-categorization of shares under the revised disclosure format for shareholding patterns of the public shareholder.

First, shareholders who are represented by a nominee director on the board of the listed entity or who have the right to appoint a representation (director) on the board of the listed entity will be sub-categorized based on ownership (number of shares) under the three sub-categories.

The second subcategory includes shareholders who have signed shareholder agreements with the listed firm, and the third includes shareholders who are working with the promoter as a team.

According to Sebi, each shareholder category should be classified and disclosed in the order specified in the format. A shareholder will be categorised in the category that comes first in the order specified in the format if they fall under more than one category.

Shareholding will be distinct and not repeated across categories for any of the categories.

According to the format for foreign ownership restrictions, listed entities must declare the limitations that the board has approved as well as the limits that were used at the end of the quarter.

According to Sebi, the circular will be in effect starting with the fiscal quarter that ends on September 30.

To Read Official Circular download the PDF Given Below