Home› India› Ministry of Finance› Amendment in the Securities Contracts (Regulation) Rules 195...
Date: 02-Jan-2023 Category: Extra Ordinary State: Union Government Country: India

Amendment in the Securities Contracts (Regulation) Rules 1957 for the purpose of strategic disinvestment

Issued by Ministry of Finance · Department of Economic Affairs

Research with AI Agent Chat with Document Generate Summary Translate Helpful Share Add to Project Create Task

Executive Summary & Key Takeaways

What it means

  • The notification amends the Securities Contracts (Regulation) Rules, 1957. These amendments are called the Securities Contracts (Regulation) Amendment Rules, 2022, and they come into force on the date of their publication in the Official Gazette, which is January 2, 2023.
  • The definition of 'Government company' is updated to align with the definition provided in the Companies Act, 2013.
  • The central government is empowered to exempt any listed entity, where the central government, a state government, or a public sector company holds a majority of shares, voting rights, or control, from any or all provisions of rule 19A, if it is in the public interest. The exemption remains valid for the specified period, even if there is a change in control of the listed entity after the exemption is granted.

Key Changes

  • Rule 2(c) of the Securities Contracts (Regulation) Rules, 1957 is amended to define 'Government company' as per Section 2(45) of the Companies Act, 2013.
  • Rule 19A(6) is amended to allow the Central Government to exempt listed entities controlled by the Central Government, State Government, or a Public Sector Company from any or all provisions of Rule 19A, if it is in public interest.
  • An explanation is added to Rule 19A clarifying that an exemption granted to a listed entity remains valid for the specified period, even if control of the entity changes after the exemption is issued.

Impact Analysis

Government Controlled Listed Entities

  • Action Items: Develop a strategy for engaging with the Central Government to request exemptions where appropriate, highlighting the public interest served by such exemptions.

Investors

  • Action Items: Engage with regulatory bodies to advocate for clear guidelines and safeguards to prevent misuse of the exemption provision.

Regulatory Bodies (e.g., SEBI)

  • Action Items: Proactively engage with regulatory bodies to provide input on the development of these guidelines, ensuring that they are clear, transparent, and consistent with the objectives of investor protection and market integrity.

Legal and Compliance Teams

  • Action Items: Review existing compliance policies and procedures to ensure they are aligned with the amended rules.

Key Entities Referenced

Central Government: The authority empowered to amend the Securities Contracts (Regulation) Rules, 1957 and to grant exemptions to listed entities under the amended Rule 19A(6). Securities Contracts (Regulation) Act, 1956: The principal legislation under which the Securities Contracts (Regulation) Rules, 1957 are framed. Section 30 of this act provides the Central Government with the power to make rules. Securities Contracts (Regulation) Rules, 1957: The set of rules being amended by this notification, governing various aspects of securities contracts. Companies Act, 2013: The legislation that defines 'Government company' as referenced in the amended rules. Section 2(45) defines Government Company. Listed Entity: A company whose shares are listed on a recognized stock exchange. State Government: A State Government in India that may hold shares, voting rights, or control in a listed entity. Public Sector Company: A company owned or controlled by the Central Government or a State Government.
Official Source Record View Original Source →
See Full Document Text
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-02012023-241613 xxxGIDHxxx CG-DL-E-02012023-241613 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 03] नई दिल्ली, सोमिार, िनिरी 2, 2023/पौि 12, 1944 No. 03] NEW DELHI, MONDAY, JANUARY 2, 2023/PAUSHA 12, 1944 जित्त मत्रं ालय (आर्थकि काय ि जिभाग) अजधसचू ना नई दिल् ली, 2 िनिरी, 2023 सा.का.जन. 03 (अ).— केंद्रीय सरकार, प्रजतभूजत संजििा (जिजनयमन) अजधजनयम, 1956 (1956 का 42) की धारा 30 द्वारा प्रित्त िजियों का प्रयोग करत े हुए, प्रजतभूजत संजििा (जिजनयमन) जनयम, 1957 का और संिोधन करन े के जलए जनम्नजलजखत जनयम बनाती ह,ै अथाित:- 1. संजिप्त नाम और प्रारंभ – (1) इन जनयमों का संजिप्त नाम प्रजतभूजत संजििा (जिजनयमन) संिोधन जनयम, 2022 ह।ै (2) ये रािपत्र म ें इनके प्रकािन की तारीख स ेप्रिृत्त होंगे। 2. प्रजतभूजत संजििा (जिजनयमन) जनयमािली, 1957 (इसके पश्चात उि जनयमों के रूप म ें संिर्भित) के, जनयम 2 के, उप-जनयम (ग) के जलए, जनम्नजलजखत उप- जनयम को अंत:स्ट्थाजपत दकया िाएगा, अथाित,— '(ग) "सरकारी कंपनी" से अजभप्रेत कंपनी अजधजनयम, 2013 (2013 का 18) की धारा 2 के खंड 45 म ें यथापररभाजित एक सरकारी कंपनी ह;ै'। 13 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] 3. उि जनयमों म,ें जनयम 19क के, उप-जनयम (6) के स्ट्थान पर, जनम्नजलजखत उप-जनयम अंत:स्ट्थ ाजपत दकया िाएगा, अथाित, - "(6) उप-जनयम (1) स े (5) म ें दकसी बात के अंतर्ििष्ट होत े हुए भी, केंद्रीय सरकार, सािििजनक जहत म,ें दकसी भी सूचीबद्ध इकाई को छूट िे सकती ह ै जिसम ें केंद्र सरकार या राज्य सरकार या सािििजनक ित्रे की कंपनी, या तो व्यजिगत रूप स े या दकसी अन्य के साथ संयोिन म ें इस जनयम के दकसी भी या सभी प्रािधानों स े प्रत्यि या अप्रत्यि रूप स,े अजधकांि िेयर या मतिान अजधकार या ऐसी सूचीबद्ध इकाई का जनयंत्रण रखती ह।ै व्याख्या - इस जनयम के प्रयोिनों के जलए, छूट उसम ें जनर्िष्टि अिजध के जलए िैध बनी रहगे ी, भले ही ऐसी छूट िारी करने के पश्चात ऐसी सूचीबद्ध इकाई के जनयंत्रण म ें कोई पररितिन हो।"। [फा. स.ं 1/14/2018-पीएम (भाग)] सुरजभ िैन, संयक्ु त सजचि (जित्तीय बािार) रटप्पण: मूल जनयम, भारत के रािपत्र, असाधारण, भाग II, खंड 3 म ें अजधसूचना संख्यांक का.जन.आ. 576, तारीख 21 फरिरी, 1957 द्वारा प्रकाजित दकए गए थ े और तत्पश्चात जनम्नजलजखत अजधसूचना संख्या द्वारा संिोजधत दकए गए थ े- (1) सा.का.जन. 1096, तारीख 14 िुलाई, 1967; (2) सा.का.जन. 685, तारीख 3 िून, 1972; (3) सा.का.जन. 959, तारीख 8 अगस्ट्त, 1972; (4) सा.का.जन. 2641, तारीख 1 निंबर, 1975; (5) सा.का.जन. 1083, तारीख 11 निंबर, 1985; (6) सा.का.जन. 666(अ), तारीख 20 िलु ाई, 1987; (7) सा.का.जन. 1070(अ), तारीख 15 निंबर, 1988; (8) सा.का.जन. 870(अ), तारीख 13 निंबर, 1992; (9) सा.का.जन. 617(अ), तारीख 20 जसतंबर, 1993 (10) सा.का.जन. 749(अ), तारीख 12 अिूबर, 1994; (11) सा.का.जन. 790(अ), तारीख 7 निंबर, 1994; (12) सा.का.जन. 121(अ), तारीख 9 माच,ि 1995; (13) सा.का.जन. 291(अ), तारीख 27 माच,ि 1995; (14) सा.का.जन. 581(अ), तारीख 23 दिसंबर, 1996; (15) सा.का.जन. 654(अ), तारीख 8 अगस्ट्त, 2000; (16) सा.का.जन. 655(अ), तारीख 8 अगस्ट्त, 2000; (17) सा.का.जन. 415(अ), तारीख 7 िून, 2001; (18) सा.का.जन. 696(अ), तारीख 28 अगस्ट्त, 2003; (19) सा.का.जन. 395(अ), तारीख 10 िून, 2009;[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 (20) सा.का.जन. 469(अ), तारीख 4 िून, 2010; (21) सा.का.जन. 662(अ), तारीख 9 अगस्ट्त, 2010; (22) सा.का.जन. 705 (अ), तारीख 25 अिूबर, 2013; (23) सा.का.जन. 21(अ), तारीख 16 िनिरी, 2014; (24) सा.का.जन. 611 (अ), तारीख 22 अगस्ट्त, 2014; (25) सा.का.जन. 682 (अ), तारीख 22 जसतम्बर, 2014; (26) सा.का.जन. 819(अ), तारीख 19 निंबर, 2014; (27) सा.का.जन. 125(अ), तारीख 26 फरिरी, 2015; (28) सा.का.जन. 268(अ), तारीख 20 माच,ि 2017; (29) सा.का.जन. 664(अ), तारीख 28 िून, 2017; (30) सा.का.जन. 822(अ), तारीख 3 िुलाई, 2017; (31) सा.का.जन. 675(अ), तारीख 25 िुलाई, 2018; (32) सा.का.जन. 738(अ), तारीख 3 अगस्ट्त, 2018; (33) सा.का.जन. 189(अ), तारीख 19 माच,ि 2020, (34) सा.का.जन. 485(अ), तारीख 31 िुलाई, 2020, (35) सा.का.जन. 423 (अ), तारीख 19 िून, 2021 तथा (36) सा.का.जन. 520 (अ), तारीख 30 िुलाई, 2021. MINISTRY OF FINANCE (DEPARTMENT OF ECONOMIC AFFAIRS) NOTIFICATION New Delhi, the 2nd January, 2023 G.S.R. 03(E).—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 the Securities Contracts (Regulation) Amendment Rules, 2022. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Securities Contracts (Regulation) Rules, 1957 (hereinafter referred to as said rules), in rule 2, for clause (c), the following clause shall be substituted, namely,- ‘(c) "Government company" means a Government company as defined in clause 45 of section 2 of the Companies Act, 2013 (18 of 2013);’. 3. In the said rules, in rule 19A, for sub-rule (6), the following sub-rule shall be substituted, namely,- "(6) Notwithstanding anything contained in sub-rules (1) to (5), the Central Government may, in public interest, exempt any listed entity in which the Central Government or State Government or public sector company, either individually or in any combination with other, hold directly or indirectly, majority of the shares or voting rights or control of such listed entity, from any or all of the provisions of this rule.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] Explanation. -- For the purposes of this rule, the exemption shall continue to be valid for the period specified therein, irrespective of any change in control of such listed entity subsequent to issuance of such exemption.”. [F. No. 1/14/2018-PM (Part)] SURBHI JAIN, Jt. Secy. (Financial Markets) Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3 vide number S.R.O. 576, dated the 21st February, 1957 and subsequently amended vide numbers as under: (1) G.S.R 1096, dated the 14th July, 1967; (2) G.S.R. 685, dated the 3rd June, 1972; (3) G.S.R. 959, dated the 8th August, 1972; (4) G.S.R. 2641, dated the 1st November, 1975; (5) G.S.R. 1083, dated the 11th November, 1985; (6) G.S.R. 666(E), dated the 20th July, 1987; (7) G.S.R. 1070(E), dated the 15th November, 1988; (8) G.S.R. 870(E), dated the 13th November, 1992; (9) G.S.R. 617(E), dated the 20th September, 1993 (10) G.S.R. 749(E), dated the 12th October, 1994; (11) G.S.R. 790(E), dated the 7th November, 1994; (12) G.S.R. 121(E), dated the 9th March, 1995; (13)G.S.R.291(E), dated the 27th March, 1995; (14) G.S.R. 581(E), dated the 23rd December, 1996; (15) G.S.R. 654(E), dated the 8th August, 2000; (16) G.S.R. 655(E), dated the 8th August, 2000; (17) G.S.R. 415(E), dated the 7th June, 2001; (18) G.S.R. 696(E), dated the 28th August, 2003; (19) G.S.R. 395(E), dated the 10th June, 2009; (20) G.S.R. 469(E), dated the 4th June, 2010; (21) G.S.R. 662(E), dated the 9th August, 2010; (22) G.S.R.705 (E), dated the 25th October, 2013; (23) G.S.R. 21(E), dated the 16th January, 2014; (24) G.S.R.611 (E), dated the 22nd August, 2014; (25)G.S.R.682 (E), dated the 22ndSeptember, 2014; (26) GSR. 819(E), dated the 19th November, 2014; (27) G.S.R. 125(E), dated the 26th February, 2015; (28) G.S.R. 268(E), dated the 20th March, 2017; (29) G.S.R. 664(E), dated the 28th June, 2017; (30) G.S.R. 822(E), dated the 3rd July, 2017; (31) G.S.R 675(E), dated the 25thJuly, 2018; (32) G.S.R. 738(E), dated the 3rd August, 2018; (33) G.S.R. 189(E), dated the 19th March, 2020, (34) G.S.R. 485(E), dated the 31st July, 2020, (35) G.S.R. 423 (E), dated the 19th June, 2021 and (36) G.S.R. 520 (E), dated the 30th July, 2021. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

Continue your research

Related Documents from Ministry of Finance