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Securities Contracts (Regulation) (Second Amendment) Rules 2018

Ministry of Finance, Department of Economic Affairs (DEA), Notification G.S.R. 738(E) dated the 3rd August 2018, reads as follows:-

In exercise of the powers conferred by section 30 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Central Government hereby makes the following rules further to amend the Securities Contracts (Regulation) Rules, 1957, namely:—

1. Short title and commencement.—

(1) These rules may be called as Securities Contracts (Regulation) (Second Amendment) Rules, 2018.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Securities Contracts (Regulation) Rules, 1957, in rule 19A,—

(i) in sub-rule (1), for the proviso, the following proviso shall be substituted:—

  “Provided that every listed public sector company which has public shareholding below twenty-five per cent. on the commencement of the Securities Contracts (Regulation)(Second Amendment) Rules, 2018, shall increase its public shareholding to at least twenty five-per cent, within a period of two years from the date of such commencement, in the manner specified by the Securities and Exchange Board of India.”;

(ii) in sub-rule (2), the following proviso shall be inserted:—

  “Provided that every listed public sector company whose public shareholding falls below twenty-five per cent. at any time after the commencement of the Securities Contracts (Regulation) (Second Amendment) Rules, 2018, shall increase its public shareholding to at least twenty five per-cent, within a period of two years from such fall, in the manner specified by the Securities and Exchange Board of India.”


Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3 vide notification number S.R.O. 576, dated the 21st February, 1957 and subsequently amended from time to time.

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