Receive Daily Updates by Email (Free Subscription)
Clause 36 of the Listing Agreement for Equity Shares
Clause 36 of the Listing Agreement for Equity Shares is as under:
Apart from complying with all specific requirements as above, the Company will keep the Exchange informed of events such as strikes, lock-outs, closure on account of power cuts, etc. both at the time of occurrence of the event and subsequently after the cessation of the event in order to enable the shareholders and the public to appraise the position of the Company and to avoid the establishment of a false market in its securities. In addition, the Company will furnish to the Exchange on request such information concerning the Company as the Exchange may reasonably require. The Company will also immediately inform the Exchange of all the events, which will have bearing on the performance/operations of the company as well as price sensitive information. The material events may be events such as:
(1) Change in the general character or nature of business:
Without prejudice to the generality of Clause 29 of the Listing Agreement, the Company will promptly notify the Exchange of any material change in the general character or nature of its business where such change is brought about by the Company entering into or proposing to enter into any arrangement for technical, manufacturing, marketing or financial tie-up or by reason of the Company, selling or disposing of or agreeing to sell or dispose of any unit or division or by the Company, enlarging, restricting or closing the operations of any unit or division or proposing to enlarge, restrict or close the operations of any unit or division or otherwise.
(2) Disruption of operations due to natural calamity.
The Company will soon after the occurrence of any natural calamity like earthquake, flood or fire disruptive of the operation of any one or more units of the Company keep the Exchange informed of the details of the damage caused to the unit thereby and whether the loss/damage has been covered by insurance, and without delay furnish to the Exchange an estimate of the loss in revenue or production arising therefrom, and the steps taken to restore normalcy, in order to enable the security holders and the public to appraise the position of the issue and to avoid the establishment of a false market in its securities.
(3) Commencement of Commercial Production/Commercial Operations
The Company will promptly notify the Exchange the commencement of commercial/production or the commencement of commercial operations of any unit/division where revenue from the unit/division for a full year of production or operations is estimated to be not less than ten per cent of the revenues of the Company for the year.
(4) Developments with respect to pricing/realisation arising out of change in the regulatory framework.
The Company will promptly inform the Exchange of the developments with respect to pricing of or in realisation on its goods or services (which are subject to price or distribution control/restriction by the Government or other statutory authorities, whether by way of quota, fixed rate of return, or otherwise) arising out of modification or change in Government’s or other authority’s policies provided the change can reasonable be expected to have a material impact on its present or future operations or its profitability.
(5) Litigation/dispute with a material impact
The Company will promptly after the event inform the Exchange of the developments with respect to any dispute in conciliation proceedings, litigation, assessment, adjudication or arbitration to which it is a party or the outcome of which can reasonably be expected to have a material impact on its present or future operations or its profitability or financials.
(6) Revision in Ratings
The Company will promptly notify the Exchange, the details of any rating or revision in rating assigned to any debt or equity instrument of the Company or to any fixed deposit programme or to any scheme or proposal of the Company involving mobilisation of funds whether in India or abroad provided the rating so assigned has been quoted, referred to, reported, relied upon or otherwise used by or on behalf of the Company.
(7) Any other information having bearing on the operation/performance of the company as well as price sensitive information, which includes but not restricted to;
i) Issue of any class of securities.
ii) Acquisition, merger, de-merger, amalgamation, restructuring, scheme of arrangement, spin off or selling divisions of the company, etc.
iii) Change in market lot of the company’s shares, sub-division of equity shares of company.
iv) Voluntary delisting by the company from the stock exchange(s).
v) Forfeiture of shares.
vi) Any action, which will result in alteration in, the terms regarding redemption/cancellation/ retirement in whole or in part of any securities issued by the company.
vii) Information regarding opening, closing of status of ADR, GDR, or any other class of securities to be issued abroad.
viii) Cancellation of dividend/rights/bonus, etc.
The above information should be made public immediately.