"Listed entities have to make several disclosures to the stock exchange in less than 24 hours of the occurrences of those material events." What are those events and activities which may take place in a company?
CS Professional · Ethics, Governance and Sustainability · PYQS · December 2020
"Listed entities have to make several disclosures to the stock exchange in less than 24 hours of the occurrences of those material events." What are those events and activities which may take place in a company?
Answer & Explanation:
Regulation 30(1) and (2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 specifies that every listed entity shall make disclosures upon occurrence of following events or information which are deemed to be material events as per Part 'A' of Schedule III of the said regulations. These events or information should be disclosed as soon as reasonably possible and not later than 24 hours from the occurrence of the event or information. In case the disclosure is made after 24 hours of occurrence of the event or information, the listed entity shall, along with such disclosures provide explanation for delay. These include: Acquisition(s) (including agreement to acquire), Scheme of Arrangement (amalgamation/merger/demerger/restructuring), or sale or disposal of any unit(s), division(s) or subsidiary of the listed entity or any other restructuring. Issuance or forfeiture of securities, split or consolidation of shares, buyback of securities, any restriction on transferability of securities or alteration in terms or structure of existing securities including forfeiture, reissue of forfeited securities, alteration of calls, redemption of securities etc. Revision in Rating(s). Agreements (viz. shareholder agreement(s), joint venture agreement(s), family settlement agreement(s) (to the extent that it impacts management and control of the listed entity), agreement(s)/treaty(ies)/contract(s) with media companies) which are binding and not in normal course of business, revision(s) or amendment(s) and termination(s) thereof. Fraud/defaults by promoter or key managerial personnel or by listed entity or arrest of key managerial personnel or promoter. Change in directors, key managerial personnel (Managing Director, Chief Executive Officer, Chief Financial Officer, Company Secretary etc.), Auditor and Compliance Officer. Appointment or discontinuation of share transfer agent. Corporate debt restructuring. One time settlement with a bank. Reference to BIFR and winding-up petition filed by any party / creditors. Issuance of Notices, call letters, resolutions and circulars sent to shareholders, debenture holders or creditors or any class of them or advertised in the media by the listed entity. Proceedings of Annual and extraordinary general meetings of the listed entity. Amendments to memorandum and articles of association of listed entity, in brief. Schedule of Analyst or institutional investor meet and presentations on financial results made by the listed entity to analysts or institutional investors. The listed entity shall disclose to the Exchange(s), outcome of Meetings of the board of directors within 30 minutes of the closure of the meeting, held to consider the following: dividends and/or cash bonuses recommended or declared or the decision to pass any dividend and the date on which dividend shall be paid/dispatched. any cancellation of dividend with reasons thereof. the decision on buyback of securities. the decision with respect to fund raising proposed to be undertaken. increase in capital by issue of bonus shares through capitalization including the date on which such bonus shares shall be credited/dispatched. reissue of forfeited shares or securities, or the issue of shares or securities held in reserve for future issue or the creation in any form or manner of new shares or securities or any other rights, privileges or benefits to subscribe to. short particulars of any other alterations of capital, including calls. financial results. decision on voluntary delisting by the listed entity from stock exchange(s).
Topics: SEBI (LODR) Regulations, 2015
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