Informal guidance under the Listing Regulations

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Oct 01, 2016

Informal guidance under the Listing Regulations

SEBI has issued an informal guidance dated August 23, 2016, under the SEBI (Informal Guidance) Scheme, 2003 (‘IG Scheme’) in the matter of Krebs Biochemicals & Industries Limited regarding the requirement to obtain a shareholders’ resolution for reclassification of the promoters as per the Listing Regulations. SEBI has clarified that subject to compliance with Regulation 31A of the Listing Regulations (which lists down conditions for reclassification), reclassification of the promoters of a listed company as public shareholders, not being pursuant to an open offer (in terms of Regulation 31A(5) of the Listing Regulations) or pursuant to a listed entity becoming professionally managed (in terms of Regulation 31A(6) of the Listing Regulations), would not require any approval from the shareholders of the listed entity.

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