Sebi Comes Out with New Format for Disclosure of Shareholding Patterns

With an aim to provide further clarity and transparency in the disclosure of shareholding pattern to investors, Sebi on Thursday came out with a new format for disclosing shareholding pattern of the public shareholders. Also, the regulator has specified that all listed entities will have to disclose details pertaining to foreign ownership limits in the a prescribed format, according to a circular.

In the disclosure of public shareholding, names of the shareholders holding one per cent or above of shares of the listed entity is to be disclosed. Further, names of the shareholders who are persons acting in concert, if available, will be disclosed separately.

In addition, Sebi came out with new formats for disclosing shareholding pattern of the public shareholders and non-promoter non-public shareholders. Under the new disclosure format pertaining to shareholding pattern of the public shareholder, Sebi has added a new coloum for sub-categorisation of shares.

Sub-categorisation of shares will be based on shareholding (number of shares) under the three sub-categories, firstly shareholders who are represented by a nominee director on the board of the listed entity or have the right to nominate a representative (director) on the board of the listed entity. Second sub-category for shareholders who have entered into shareholder agreement with the listed entity, and third for shareholders acting as persons in concert with promoter.

According to Sebi, categorisation and disclosure of each shareholder category should be carried out in the order prescribed in the format. If a shareholder is falling under more than one category then the same will be classified in the category falling first in the order prescribed in the format. Shareholding under any of the categories will be unique and will not be duplicated under multiple categories.

Under the format for foreign ownership limits, listed entities need to disclose about board-approved limits and limit utilised at the end of a quarter. The circular will come into force with effect from the quarter ending September 30, Sebi said.