A listed company can apply to stock exchange for re-classification of the Promoter's holdings as public shareholders under SEBI regulations. Whether following promoters can apply for re-classification with reference to S
CS Executive · Securities Laws and Capital Markets · PYQS · June 2019
A listed company can apply to stock exchange for re-classification of the Promoter's holdings as public shareholders under SEBI regulations. Whether following promoters can apply for re-classification with reference to SEBI regulations ? (c) Promoter is acting as CEO of the listed entity.
Answer & Explanation:
As per Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR Regulations") deals with the conditions for re-classification of any person as promoter / public. Based on the provisions of Regulation 31A of the SEBI LODR Regulations, the following are the answers to the circumstances given: (c) Promoter is acting as a key managerial person in the listed entity. As per Regulation 31A (b)(v), if the promoter acts as a key managerial person in the listed entity he is not eligible for re-classification. In the given case, the promoter is a CEO hence he is not eligible for re-classification.
Topics: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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