Jul 6, 2012

Reduction of Time-line for Transfer of Shares

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Reduction of Time-line for Transfer of Shares

SEBI has vide its Circular No. CIR/MIRSD/8 /2012 dated 5th July 2012, issued the following Directions with regard to time lines for transfer of equity shares and debt securities of listed companies:

1. With a view to expedite the transfer process in the interest of the investors, SEBI has decided to reduce the time-line for registering the transfer of shares to 15 days from the date of lodgement, instead of 1 month, as stipulated in the Listing Agreement.

2. Accordingly, following amendments shall be made in the respective Listing Agreements:

Listing Agreement Clauses to be amended
Equity Listing Agreement Clauses 3 (c) and 12A(3)
SME Equity Listing Agreement Clauses 3(c) and 14(b)
Listing Agreement for Debt Securities To incorporate the time-line of 15 days for transfer of debt securities and the provision for compensation of the opportunity losses caused during the period of delay in transfer
3. All RTAs have been directed to adhere to the revised time lines.

In addition to the above, SEBI has vide another Circular of the same date, has revised the Reporting formats for the RTAs to the Issues, needed to be filed with SEBI with 3 months of the end of each half year. The new format shall be applicable w.e.f the half year ended 30th September 2012

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