Explain the conditions and procedure to be adopted by a listed company to change its name as per Regulation 45 of SEBI (LODR) Regulations 2015.
CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · June 2021
Explain the conditions and procedure to be adopted by a listed company to change its name as per Regulation 45 of SEBI (LODR) Regulations 2015.
Answer & Explanation:
Listed Entity is allowed to change its Name, subject to compliance with the following conditions as prescribed in the SEBI (LODR) Regulations, 2015: at least 1 year has elapsed from the last Name change; at least 50% of the Total Revenue in the preceding 1 year period has been accounted for by the new activity suggested by the new name; or the amount invested in the new activity project is at least 50% of the Assets of the listed entity. If any listed entity has changed its activities which are not reflected in its name, it shall change its name in line with its activities within a period of six months from the change of activities in compliance of provisions as applicable to change of name prescribed under Companies Act, 2013. On receipt of availability confirmation and, before filing the request for change with the Registrar of Companies (ROC), the company shall seek approval from Stock Exchange (SE) before making final application to ROC for name change. The company shall submit a certificate from Chartered Accountant (CA) stating compliance of conditions as mentioned above.
Topics: SEBI (LODR) Regulations, 2015
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