Executive Summary:
This document outlines the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Third Amendment Regulations, 2016. It amends the 2015 regulations, focusing on obligations related to employees, senior management, key managerial personnel, directors, and promoters. The regulations came into force on the date of their publication in the Official Gazette, January 4, 2017. It also requires disclosure of existing and past agreements to the stock exchanges and seeking necessary approvals.
Key Points / Main Content:
* **General Information**
* These regulations are called the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Third Amendment Regulations, 2016.
* The regulations came into force on the date of their publication in the Official Gazette.
* **Amendments to Regulation 26 of the 2015 Regulations**
* The title of regulation 26 is substituted with "Obligations with respect to employees including senior management, key managerial persons, directors and promoters".
* A new subregulation 6 is inserted after subregulation 5.
* **Subregulation 6 Provisions**
* Prohibits employees, key managerial personnel, directors, or promoters of a listed entity from entering into agreements regarding compensation or profit sharing related to dealings in the entity's securities without prior approval.
* Requires approval from the Board of Directors and public shareholders via an ordinary resolution.
* Mandates disclosure to stock exchanges of existing or expired agreements within the preceding three years from the enforcement date of this subregulation for public dissemination.
* Requires placing existing agreements before the Board of Directors for approval in the forthcoming Board meeting.
* If the Board approves, the agreement must be placed before public shareholders for approval via an ordinary resolution in the forthcoming general meeting.
* Interested parties involved in the agreement must abstain from voting in the general meeting.
* **Definition of "Interested Person"**
* An interested person is defined as anyone holding voting rights in the listed entity who is directly or indirectly interested in the agreement.
Impact Analysis:
* **Listed Entities:**
* *Impact:* Listed entities must ensure compliance with the new regulations, specifically regarding agreements related to compensation or profit sharing involving their securities. They must also manage the process of obtaining necessary approvals and disclosures.
* *Action Required:* Review and amend internal policies to align with the new regulations. Establish procedures for disclosing existing agreements, obtaining board and shareholder approvals, and ensuring compliance with voting restrictions for interested parties.
* **Employees, Senior Management, Key Managerial Personnel, Directors, and Promoters:**
* *Impact:* These individuals are now restricted from entering into compensation or profit-sharing agreements related to the listed entity's securities without prior approval.
* *Action Required:* Disclose any existing agreements to the company. Obtain Board and shareholder approval for any new or existing agreements as required. Abstain from voting if considered an interested party.
* **Shareholders:**
* *Impact:* Shareholders, particularly public shareholders, have a role in approving agreements related to compensation or profit sharing via ordinary resolutions.
* *Action Required:* Review and vote on proposed agreements during general meetings, ensuring they are fully informed and understand the implications. Disclose any agreements as required.
* **Board of Directors:**
* *Impact:* Responsible for reviewing and approving agreements before they are presented to public shareholders.
* *Action Required:* Establish process for reviewing proposed agreements, ensuring compliance with the regulations, and presenting agreements for shareholder approval where necessary.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): A regulatory body for securities markets in India. The notification is issued by SEBI.
Securities and Exchange Board of India Act, 1992: An act of the Parliament of India that established the Securities and Exchange Board of India (SEBI).
Securities Contracts Regulation Act, 1956: An act to prevent undesirable transactions in securities by regulating the business of dealing therein
Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015: Regulations pertaining to the listing obligations and disclosure requirements for companies listed on Indian stock exchanges.
Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Third Amendment Regulations, 2016: Amendment to the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations
Mumbai, Maharashtra: The city and state where the Securities and Exchange Board of India (SEBI) notification was issued.
Official Gazette: A public journal where important government notifications are published.
U.K. Sinha: Chairman of Securities and Exchange Board of India (SEBI) at the time of notification.
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EXTRAORDINARY
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PART III—Section 4
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PUBLISHED BY AUTHORITY
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No. 06] NEW DELHI, WEDNESDAY, JANUARY 4, 2017/PAUSA 14, 1938
भारतीय (cid:7079)ितभिूत और िविनमय बोड (cid:6981)
अिधसचू ना
मु(cid:7013)बई, 3 जनवरी, 2017
भारतीय (cid:7079)ितभिूत और िविनमय बोड (cid:6981) [सचू ीब(cid:7373)ता (िल(cid:7410)(cid:7021)टग) बा(cid:7007)यताए ँऔर (cid:7079)कटीकरण अप(cid:6979)े ाए]ँ
(तीसरा संशोधन) िविनयम, 2016
सं. सेबी/ एल.ए.डी.-एन.आर. ओ./जी.एन./2016-17/025.—भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981), (cid:7079)ितभूित संिवदा
(िविनयमन) अिधिनयम, 1956 (1956 का 42) क(cid:7409) धारा 31 के साथ प(cid:7407)ठत भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) अिधिनयम, 1992
(1992 का 15) क(cid:7409) धारा 11, धारा 11क क(cid:7409) उप-धारा (2) तथा धारा 30 (cid:7367)ारा (cid:7079)द(cid:7275) शि(cid:7334)य(cid:7298) का (cid:7079)योग करते (cid:7263)ए, एत(cid:7375)ारा भारतीय
(cid:7079)ितभूित और िविनमय बोड(cid:6981) [सूचीब(cid:7373)ता (िल(cid:7410)(cid:7021)टग) बा(cid:7007)यताए ँऔर (cid:7079)कटीकरण अपे(cid:6979)ाएँ] िविनयम, 2015 का और संशोधन करने के िलए
िन(cid:7388)िलिखत िविनयम बनाता ह,ै अथा(cid:6981)त् :-
1. इन िविनयम(cid:7298) को भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) [सूचीब(cid:7373)ता (िल(cid:7410)(cid:7021)टग) बा(cid:7007)यताए ँ और (cid:7079)कटीकरण अपे(cid:6979)ाएँ] (तीसरा
संशोधन) िविनयम, 2016 कहा जाएगा ।
2. वे राजप(cid:7074) म(cid:7286) उनके (cid:7079)काशन क(cid:7409) तारीख को (cid:7079)वृ(cid:7275) ह(cid:7298)ग े।
3. भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) [सूचीब(cid:7373)ता (िल(cid:7410)(cid:7021)टग) बा(cid:7007)यताएँ और (cid:7079)कटीकरण अपे(cid:6979)ाएँ] िविनयम, 2015 म(cid:7286), िविनयम
26 म(cid:7286), -
i.(cid:32) शीष(cid:6981)क िन(cid:7388)िलिखत से (cid:7079)ित(cid:7021)थािपत हो जाएगा, अथा(cid:6981)त् -
"कमच(cid:6981) ा(cid:7407)रय(cid:7298) [िजनम (cid:7286) (cid:6996)ये(cid:7399) (cid:7079)बंध-मंडल, म(cid:6990)ु य (cid:7079)बधं क(cid:7409)य (cid:7390)ि(cid:7334) (क(cid:7409) मैनजे (cid:7407)ेरयल पस(cid:7008)(cid:6981) स), िनदेशक (डायरे(cid:6989)टस)(cid:6981) और
सं(cid:7079)वतक(cid:6981) ((cid:7079)ोमोटस)(cid:6981) शािमल ह](cid:7289) के संबंध म (cid:7286)बा(cid:7007)यताएँ" ।
ii.(cid:32) उप-िविनयम (5) के प(cid:7391)ात्, िन(cid:7388)िलिखत उप-िविनयम अंतः(cid:7021)थािपत (cid:7408)कया जाएगा, अथा(cid:6981)त् :-
"(6) सूचीब(cid:7373) (िलि(cid:7021)टड) एं(cid:7407)टटी का कोई भी कम(cid:6981)चारी [िजसम(cid:7286) मु(cid:6990)य (cid:7079)बंधक(cid:7409)य का(cid:7414)मक (क(cid:7409) मैनेजे(cid:7407)रयल पस(cid:7299)नल) या
िनदेशक (डायरे(cid:6989)टर) या सं(cid:7079)वत(cid:6981)क ((cid:7079)ोमोटर) शािमल है] अपने िलए या (cid:7408)कसी अ(cid:7008)य (cid:7390)ि(cid:7334) क(cid:7409) ओर से, (cid:7408)कसी शेयरधारक या
42 GI/2017 (1)(cid:32)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
(cid:7408)कसी अ(cid:7008)य पर-(cid:7390)ि(cid:7334) (थड (cid:6981) पाट(cid:7278)) के साथ ऐसी सूचीब(cid:7373) (िलि(cid:7021)टड) एं(cid:7407)टटी क(cid:7409) (cid:7079)ितभूितय(cid:7298) (िस(cid:6989)यू(cid:7407)रटीज़) म(cid:7286) (cid:7408)कए जाने
वाले लेन-दने (डी(cid:7410)ल(cid:6991)स) के संबंध म(cid:7286) (cid:7079)ितकर (कॉ(cid:7013)प(cid:7008)सेशन) या मुनाफे (लाभ) के बँटवारे क(cid:7409) बाबत तब तक कोई करार
(ए(cid:7061)ीम(cid:7286)ट) नह(cid:7277) करेगा, जब तक (cid:7408)क िनदशे क बोड(cid:6981) (िनदेशक मंडल) से और साव(cid:6981)जिनक शेयरधारक(cid:7298) (पि(cid:7011)लक शेयरहो(cid:7016)डस(cid:6981)) से
(साधारण संक(cid:7016)प के मा(cid:7007)यम से) इसके िलए पहले से अनुमोदन (cid:7079)ा(cid:7385) न कर िलया जाए :
परंतु यह (cid:7408)क इस उप-िविनयम के (cid:7079)वृ(cid:7275) होने क(cid:7409) तारीख से पूव(cid:6981)वत(cid:7278) तीन वष(cid:7300) के दौरान (cid:7408)कया गया ऐसा करार, य(cid:7408)द कोई हो
(चाह ेवह अि(cid:7021)त(cid:7004)व म(cid:7286) हो या समा(cid:7385) हो गया हो), साव(cid:6981)जिनक (cid:7079)सार हेतु, (cid:7021)टॉक ए(cid:6989)सच(cid:7286)ज(cid:7298) को (cid:7079)कट (cid:7408)कया जाएगा :
परंतु यह और (cid:7408)क इस उप-िविनयम के (cid:7079)वृ(cid:7275) होने क(cid:7409) तारीख को जो करार अि(cid:7021)त(cid:7004)व म(cid:7286) हो (य(cid:7408)द कोई हो), उसे बोड (cid:6981) क(cid:7409)
आगामी बैठक म(cid:7286) िनदेशक बोड (cid:6981)(िनदेशक मंडल) के सम(cid:6979) अनुमोदन के िलए रखा जाएगा :
परंतु यह और (cid:7408)क य(cid:7408)द िनदेशक बोड (cid:6981)(िनदेशक मंडल) ऐसे करार को अनुमोदन (cid:7079)दान कर देता ह,ै तो उसे आगामी साधारण
बैठक म(cid:7286) साव(cid:6981)जिनक शेयरधारक(cid:7298) के सम(cid:6979) अनुमोदन (साधारण संक(cid:7016)प के मा(cid:7007)यम से) के िलए रखा जाएगा :
परंतु यह और (cid:7408)क करार के अधीन आन े वाले लेन-दने (सं(cid:7390)वहार/ (cid:7069)ांजे(cid:6989)श(cid:7008)स) म(cid:7286) शािमल सभी िहतब(cid:7373) (cid:7390)ि(cid:7334) साधारण
बैठक म(cid:7286) होने वाले मतदान म(cid:7286) िह(cid:7021)सा नह(cid:7277) ल(cid:7286)गे।
(cid:7021)प(cid:7397)ीकरण - इस उप-िविनयम के (cid:7079)योजनाथ(cid:6981), 'िहतब(cid:7373) (cid:7390)ि(cid:7334)' (इ(cid:7008)(cid:7069)ि(cid:7021)टड पस(cid:6981)न) से ऐसा कोई (cid:7390)ि(cid:7334) अिभ(cid:7079)ेत होगा, जो
सूचीब(cid:7373) (िलि(cid:7021)टड) एं(cid:7407)टटी म(cid:7286) मतािधकार रखता हो और जो ऐसे (cid:7408)कसी (cid:7390)ि(cid:7334) (cid:7367)ारा अथवा ऐसी सूचीब(cid:7373) एं(cid:7407)टटी के (cid:7408)कसी
कम(cid:6981)चारी या मु(cid:6990)य (cid:7079)बंधक(cid:7409)य का(cid:7414)मक या िनदशे क या सं(cid:7079)वत(cid:6981)क (cid:7367)ारा (cid:7408)कसी शेयरधारक या (cid:7408)कसी अ(cid:7008)य पर-(cid:7390)ि(cid:7334) के साथ,
ऐसी सूचीब(cid:7373) एं(cid:7407)टटी क(cid:7409) (cid:7079)ितभूितय(cid:7298) के संबंध म(cid:7286) (cid:7079)ितकर (कॉ(cid:7013)प(cid:7008)सेशन) या मुनाफे (लाभ) के बँटवारे क(cid:7409) बाबत (cid:7408)कए गए
करार या (cid:7408)कए जाने वाले (cid:7079)(cid:7021)तािवत करार म(cid:7286), (cid:7408)कसी भी (cid:7079)कार से (चाह े(cid:7079)(cid:7004)य(cid:6979)तः या अ(cid:7079)(cid:7004)य(cid:6979)तः) िहतब(cid:7373) हो ।"
यू.के. िस(cid:7008)हा, अ(cid:7007)य(cid:6979)
[िव(cid:6980)ापन III/4/असा./363/16]
पाद (cid:7407)ट(cid:7009)पण :
1.(cid:32) भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) [सूचीब(cid:7373)ता (िल(cid:7410)(cid:7021)टग) बा(cid:7007)यताएँ और (cid:7079)कटीकरण अपे(cid:6979)ाएँ] िविनयम, 2015, सं.
सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2015-16/013, 2 िसत(cid:7013)बर, 2015 को भारत के राजप(cid:7074) म(cid:7286) (cid:7079)कािशत (cid:7263)ए थे ।
2.(cid:32) भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) [सूचीब(cid:7373)ता (िल(cid:7410)(cid:7021)टग) बा(cid:7007)यताएँ और (cid:7079)कटीकरण अपे(cid:6979)ाएँ] िविनयम, 2015 त(cid:7004)प(cid:7391)ात् :
(क)(cid:32) 22 (cid:7408)दस(cid:7013)बर, 2015 को भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) [सूचीब(cid:7373)ता (िल(cid:7410)(cid:7021)टग) बा(cid:7007)यताएँ और (cid:7079)कटीकरण
अपे(cid:6979)ाएँ] (संशोधन) िविनयम, 2015, अिधसूचना सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2015-16/027, (cid:7367)ारा
(ख)(cid:32) 25 मई, 2016 को भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) [सूचीब(cid:7373)ता (िल(cid:7410)(cid:7021)टग) बा(cid:7007)यताएँ और (cid:7079)कटीकरण अपे(cid:6979)ाएँ]
(संशोधन) िविनयम, 2016, अिधसूचना सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-17/001, (cid:7367)ारा
(ग)(cid:32) 8 जुलाई, 2016 को भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) [सूचीब(cid:7373)ता (िल(cid:7410)(cid:7021)टग) बा(cid:7007)यताएँ और (cid:7079)कटीकरण अपे(cid:6979)ाएँ]
(दसू रा संशोधन) िविनयम, 2016, अिधसूचना सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-17/008, (cid:7367)ारा
संशोिधत (cid:7263)ए थे ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 3rd January, 2017
SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE
REQUIREMENTS) (THIRD AMENDMENT) REGULATIONS, 2016
No. SEBI/LAD-NRO/GN/2016-17/025.─In exercise of the powers conferred by section 11, sub-section (2) of
section 11A and section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with section 31 of
the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Securities and Exchange Board of India hereby makes¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
the following regulations to further amend the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, namely:—
1.(cid:32) These regulations shall be called the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) (Third Amendment) Regulations, 2016.
2.(cid:32) They shall come into force on the date of their publication in the Official Gazette.
3.(cid:32) In the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015, in regulation 26,-
i.(cid:32) the title shall be substituted with the following, namely-
"Obligations with respect to employees including senior management, key managerial persons, directors
and promoters".
ii.(cid:32) after sub-regulation (5), the following sub-regulation shall be inserted, namely:-(cid:32)
“(6) No employee including key managerial personnel or director or promoter of a listed entity shall enter into
any agreement for himself or on behalf of any other person, with any shareholder or any other third party with
regard to compensation or profit sharing in connection with dealings in the securities of such listed entity, unless
prior approval for the same has been obtained from the Board of Directors as well as public shareholders by way
of an ordinary resolution:
Provided that such agreement, if any, whether subsisting or expired, entered during the preceding three years
from the date of coming into force of this sub-regulation, shall be disclosed to the stock exchanges for public
dissemination:
Provided further that subsisting agreement, if any, as on the date of coming into force of this sub-regulation
shall be placed for approval before the Board of Directors in the forthcoming Board meeting:
Provided further that if the Board of Directors approve such agreement, the same shall be placed before the
public shareholders for approval by way of an ordinary resolution in the forthcoming general meeting:
Provided further that all interested persons involved in the transaction covered under the agreement shall abstain
from voting in the general meeting.
Explanation - For the purposes of this sub-regulation, ‘interested person’ shall mean any person holding voting
rights in the listed entity and who is in any manner, whether directly or indirectly, interested in an agreement or
proposed agreement, entered into or to be entered into by such a person or by any employee or key managerial
personnel or director or promoter of such listed entity with any shareholder or any other third party with respect
to compensation or profit sharing in connection with the securities of such listed entity.”
U.K. SINHA,Chairman
[ADVT III/4/Exty./363/16]
Footnote:
1.(cid:32) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 were published in the Gazette of India on 2nd September,2015 vide No. SEBI/LAD-
NRO/GN/2015-16/013.
2.(cid:32) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, were subsequently amended on:
(a)(cid:32) December 22, 2015 by Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) (Amendment) Regulations, 2015 vide notification no. SEBI/LAD-
NRO/GN/2015-16/27.
(b)(cid:32) May 25, 2016 by Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) (Amendment) Regulations, 2016 vide notification no. SEBI/LAD-NRO/GN/
2016-17/001.
(c)(cid:32) July 08, 2016 by Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) (Second Amendment) Regulations, 2016 vide notification no. SEBI/ LAD-
NRO/GN/2016-17/008.
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