Date: 2014-08-22Category: Extra OrdinaryState: Union GovernmentCountry: India
The Central Govt hereby makes the following rules further to amend the Securities Contracts (Regulation) Rules, 1957, These rules may be called the Securities Contracts (Regulation) (Second Amendment) Rules, 2014.
**Summary:**
This notification, issued by the Ministry of Finance's Department of Economic Affairs, announces the Securities Contracts Regulation Second Amendment Rules, 2014, effective August 22, 2014. The amendment modifies the Securities Contracts Regulation Rules, 1957, specifically addressing public shareholding requirements for listed public sector companies.
The key changes include:
* **Rule 19A Amendment:** Sub-rule 1(a) removes the phrase "other than public sector Company." A new proviso is substituted, mandating that every listed public sector company with public shareholding below twenty-five percent on August 22, 2014, must increase its public shareholding to at least twenty-five percent within three years. The manner of achieving this target will be specified by the Securities and Exchange Board of India (SEBI).
* **Rule 19A Amendment:** Sub-rule 3 is omitted.
The notification is referenced as G.S.R. 611(E) and originates from F. No. 5352006/CM. Manoj Joshi, Joint Secretary, Financial Markets, is listed as the contact person. The legal authority for this amendment is derived from clause (ha) of subsection (2) of section 30 of the Securities Contracts Regulation Act, 1956 (42 of 1956).
Key Entities Referenced
Securities Contracts Regulation Act, 1956: A law that is being amended.
Securities Contracts Regulation Rules, 1957: The rules which are being amended by this notification.
Securities Contracts Regulation Second Amendment Rules, 2014: The name of the amendment rules introduced by this notification.
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: The location where the notification was issued.
Securities and Exchange Board of India: The regulatory body which will specify the manner for increasing public shareholding.
Manoj Joshi: Joint Secretary, Financial Markets who approved the notification.
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(ii) उपिनयम (3) का लोप (cid:1)कया जाएगा ।
[फा. सं. 5/35/2006-सीएम]
मनोज जोशी, संयु(cid:31) सिचव (िव(cid:29)ीय बाजार)
3304 GI/2014 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 22nd August, 2014
G.S.R. 611(E).—In exercise of the power conferred by clause (ha) of sub-section (2) of 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. These rules may be called the Securities Contracts (Regulation) (Second Amendment) Rules, 2014.
(2) They shall come into the 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),—
(a) the words “other than public sector Company” shall be omitted;
(b) for the proviso the following proviso shall be substituted, namely:—
“Provided that every listed public sector company which has public shareholding below twenty
five per cent., on the date of commencement of the Securities Contracts (Regulation) (Second
Amendment) Rules, 2014, shall increase its public shareholding to atleast twenty five per cent.,
within a period of three years, in the manner, as may be specified, by the Securities and Exchange
Board of India.”;
(ii) sub-rule (3) shall be omitted.
[F. No. 5/35/2006-CM]
MANOJ JOSHI, Jt. Secy. (Financial Markets)
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.