Home India Ministry of Finance In exercise of the powers conferred by section 30 of the Sec...
Date: 2018-08-03 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by section 30 of the Securities Contracts Regulation Act

Issued by Ministry of Finance · Department of Economic Affairs

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Executive Summary & Key Takeaways

Executive Summary: This notification from the Ministry of Finance amends the Securities Contracts Regulation Rules, 1957. It concerns increasing public shareholding in listed public sector companies. Key action is required from listed public sector companies with public shareholding below 25% to increase it within two years. The rules take effect on the date of publication in the Official Gazette, August 3, 2018. Key Points / Main Content: * **Amendment Title:** Securities Contracts Regulation Second Amendment Rules, 2018. * **Effective Date:** These rules come into force on August 3, 2018. * **Amendment to Rule 19A:** * **Sub-rule 1:** Every listed public sector company with public shareholding below 25% on August 3, 2018, must increase it to at least 25% within two years, as specified by the Securities and Exchange Board of India (SEBI). * **Sub-rule 2:** Every listed public sector company whose public shareholding falls below 25% after August 3, 2018, must increase it to at least 25% within two years of the fall, as specified by SEBI. Impact Analysis: **Listed Public Sector Companies:** * Impact: Companies with public shareholding below 25% are required to increase it. * Action Required: Increase public shareholding to at least 25% within two years, following SEBI guidelines. **Securities and Exchange Board of India (SEBI):** * Impact: Responsible for specifying the manner in which public sector companies increase their public shareholding. * Action Required: Provide guidelines for listed public sector companies to increase their public shareholding.

Key Entities Referenced

Securities Contracts Regulation Act, 1956: A law that is the basis for the rules being amended. Securities Contracts Regulation Rules, 1957: The principal rules that are being amended by this notification. Securities Contracts Regulation Second Amendment Rules, 2018: The title of the amendment rules being published. Ministry of Finance: The ministry under which the Department of Economic Affairs operates, responsible for this notification. Department of Economic Affairs: The department within the Ministry of Finance that issued the notification. New Delhi, Delhi: The location where the notification was issued. Securities and Exchange Board of India: The regulatory body specified to define the manner of increasing public shareholding. Dr. SHASHANK SAKSENA: Adviser FSRL who is mentioned in the document.
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L.-33004/99 vlk/kj.k EXTRAORDINARY Hkkx II—[k.M 3—mi&[k.M (i) PART II—Section 3—Sub-section (i) izkf/dkj ls izdkf'kr PUBLISHED BY AUTHORITY la- 539] ubZ fnYyh] 'kqØokj] vxLr 3] 2018@Jko.k 12] 1940 No. 539] NEW DELHI, FRIDAY, AUGUST 3, 2018/SHRAVANA 12, 1940 ििििवववव(cid:3)(cid:3)(cid:3)(cid:3) मममम(cid:7)(cid:7)ंं(cid:7)(cid:7)ंं ााााललललयययय ((((आआआआ(cid:3)(cid:3)(cid:3)(cid:3)थथथथकककक ककककाााायययय(cid:9) (cid:9) (cid:9) (cid:9) ििििववववभभभभाााागगगग)))) अअअअििििधधधधससससचचूूचचूू ननननाााा नई (cid:4)द(cid:6)ली, 3 अग(cid:12)त, 2018 ससससाााा....ककककाााा....ििििनननन.... 777733338888((((अअअअ))))....—के(cid:16)(cid:17)ीय सरकार, (cid:22)ितभूित सिं वदा (िविनयमन) अिधिनयम, 1956 (1956 का 42) क& धारा 30 )ारा (cid:22)द* शि,य- का (cid:22)योग करते /ए, (cid:22)ितभिू त संिवदा (िविनयमन) िनयम, 1957 का और संशोधन करन े के िलए िन3िलिखत िनयम बनाती ह,ै अथा9त ्:— 1. ससससििंंििंं(cid:12)(cid:12)(cid:12)(cid:12)(cid:13)(cid:13)(cid:13)(cid:13) ननननाााामममम औऔऔऔरररर (cid:17)(cid:17)(cid:17)(cid:17)ाााारररर(cid:18)(cid:18)(cid:18)(cid:18)भभभभ....—(1) इन िनयम- का संि<= नाम (cid:22)ितभिू त सिं वदा (िविनयमन) (ि)तीय संशोधन) िनयम, 2018 ह ै। (2) य ेराजप@ मA (cid:22)काशन क& तारीख को (cid:22)वृ* ह-ग े। 2. (cid:22)ितभिू त संिवदा (िविनयमन) िनयम, 1957 के िनयम 19क म,A— (i) उप-िनयम (1) मA, परंतकु के (cid:12)थान पर, िन3िलिखत परंतुक रखा जाएगा:— "परंत ु ऐसी (cid:22)Fयके सूचीबH पिIलक सJे टर कंपनी, िजसक& लोक शेयरधिृ त, (cid:22)ितभूित संिवदा (िविनयमन) (दसू रा संशोधन) िनयम, 2018 के आरंभ होन े पर पNीस (cid:22)ितशत से कम ह,ै उस रीित मA, जो भारतीय (cid:22)ितभिू त और िविनयम बोड 9 )ारा िविनQदR क& जाए, इसके आरंभ होन े क& तारीख से दो वष9 क& अविध के भीतर अपनी लोक शेयरधिृ त को बढ़ाकर कम स ेकम पNीस (cid:22)ितशत तक करेगी।"; (ii) उप-िनयम (2) मA, िन3िलिखत परंतकु अंतः(cid:12)थािपत (cid:4)कया जाएगाः— "परंत ु ऐसी (cid:22)Fयके सूचीबH पिIलक सेJटर कंपनी, िजसक& लोक शेयरधिृ त, (cid:22)ितभिू त संिवदा (िविनयमन) (दसू रा संशोधन) िनयम, 2018 के आरंभ होन े के बाद (cid:4)कसी भी समय पNीस (cid:22)ितशत स े कम हो जाती ह,ै उस रीित मA, जो भारतीय (cid:22)ितभिू त और िविनयम बोड 9)ारा िविनQदR क& जाए, ऐसी िगरावट होने क& तारीख से दो वष 9क& अविध के भीतर अपनी लोक शेयरधिृ त को बढ़ाकर कम से कम पNीस (cid:22)ितशत तक करेगी।" [फा. सं. 5/35/सीएम/2006 खंड-III] डॉ. शशांक सJसेना, सलाहकार (एफएसआरएल) 4570 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (cid:20)(cid:20)(cid:20)(cid:20)टटटट(cid:22)(cid:22)(cid:22)(cid:22)पपपपणणणण :::: मूल िनयम, भारत के राजप@, असाधारण, भाग II, खंड 3 म A अिधसूचना सं. का.िन.आ. 576, तारीख 21 फरवरी, 1957 )ारा (cid:22)कािशत (cid:4)कए गए थ ेऔर तFप[ात् िन3िलिखत अिधसूचना सं\या] )ारा संशोिधत (cid:4)कए गए थ:े— (1) सा.का.िन. 1096, तारीख 14 जुलाई, 1967 ; (2) सा.का.िन. 685, तारीख 3 जून, 1972 ; (3) सा.का.िन. 959, तारीख 8 अग(cid:12)त, 1972 ; (4) सा.का.िन. 2641, तारीख 1 नव^बर, 1975 ; (5) सा.का.िन. 1083, तारीख 11 नव^बर, 1985 ; (6) सा.का.िन. 666(अ), तारीख 20 जुलाई, 1987 ; (7) सा.का.िन. 1070(अ), तारीख 15 नव^बर, 1988 ; (8) सा.का.िन. 870(अ), तारीख 13 नव^बर, 1992 ; (9) सा.का.िन. 617(अ), तारीख 20 िसत^बर, 1993 ; (10) सा.का.िन. 749(अ), तारीख 12 अ,ूबर, 1994 ; (11) सा.का.िन. 790(अ), तारीख 7 नव^बर, 1994 ; (12) सा.का.िन. 121(अ), तारीख 9 माच,9 1995 ; (13) सा.का.िन. 291(अ), तारीख 27 माच,9 1995 ; (14) सा.का.िन. 581(अ), तारीख 23 (cid:4)दस^बर, 1996 ; (15) सा.का.िन. 654(अ), तारीख 8 अग(cid:12)त, 2000 ; (16) सा.का.िन. 655(अ), तारीख 8 अग(cid:12)त, 2000 ; (17) सा.का.िन. 415(अ), तारीख 7 जून, 2001 ; (18) सा.का.िन. 696(अ), तारीख 28 अग(cid:12)त, 2003 ; (19) सा.का.िन. 395(अ), तारीख 10 जून, 2009 ; (20) सा.का.िन. 469(अ), तारीख 4 जून, 2010 ; (21) सा.का.िन. 662(अ), तारीख 9 अग(cid:12)त, 2010 ; (22) सा.का.िन. 705(अ), तारीख 24 अ,ूबर, 2013 ; (23) सा.का.िन. 21(अ), तारीख 16 जनवरी, 2014 ; (24) सा.का.िन. 611(अ), तारीख 22 अग(cid:12)त, 2014 ; (25) सा.का.िन. 682(अ), तारीख 19 िसत^बर, 2014 ; (26) सा.का.िन. 819(अ), तारीख 18 नव^बर, 2014 ; (27) सा.का.िन. 125(अ), तारीख 25 फरवरी, 2015 ; (28) सा.का.िन. 268(अ), तारीख 20 माच,9 2017 ; (29) सा.का.िन. 664(अ), तारीख 27 जून, 2017 ; (30) सा.का.िन. 822(अ), तारीख 3 जुलाई, 2017; और (31) सा.का.िन. 675(अ), तारीख 25 जुलाई, 2018.¹Hkkx IIµ[k.M 3(i)º Hkkjr dk jkti=k % vlk/kj.k 3 MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 3rd August, 2018 G.S.R. 738(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 as Securities Contracts (Regulation) (Second Amendment) Rules, 2018. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Securities Contracts (Regulation) Rules, 1957, in rule 19A,— (i) in sub-rule (1), for the proviso, the following proviso shall be substituted:— “Provided that every listed public sector company which has public shareholding below twenty- five per cent. on the commencement of the Securities Contracts (Regulation)(Second Amendment) Rules, 2018, shall increase its public shareholding to at least twenty five-per cent, within a period of two years from the date of such commencement, in the manner specified by the Securities and Exchange Board of India.”; (ii) in sub-rule (2), the following proviso shall be inserted:— “Provided that every listed public sector company whose public shareholding falls below twenty- five per cent. at any time after the commencement of the Securities Contracts (Regulation) (Second Amendment) Rules, 2018, shall increase its public shareholding to at least twenty five per-cent, within a period of two years from such fall, in the manner specified by the Securities and Exchange Board of India.” [F. No. 5/35/CM/2006 Volume-III] Dr. SHASHANK SAKSENA, Adviser (FSRL) Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3 vide notification number S.R.O. 576, dated the 21st February, 1957 and subsequently amended vide notification 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;4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (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 24th 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 19th September, 2014; (26) G.S.R. 819(E), dated the 18th November, 2014; (27) G.S.R. 125(E), dated the 25th February, 2015; (28) G.S.R. 268(E), dated the 20th March, 2017; (29) G.S.R. 664(E), dated the 27th June, 2017; (30) G.S.R. 822(E), dated the 3rd July, 2017 and (31) G.S.R. 675(E), dated the 25th July, 2018. 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.

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