{"id":1604,"date":"2021-01-22T09:35:15","date_gmt":"2021-01-22T09:35:15","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1604"},"modified":"2021-03-17T09:50:31","modified_gmt":"2021-03-17T09:50:31","slug":"key-changes-made-in-sebi-listing-obligations-and-disclosure-requirements-amendment-regulations-2021","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-sebi-listing-obligations-and-disclosure-requirements-amendment-regulations-2021\/","title":{"rendered":"Key Changes Made in SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations 2021"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently, the Securities Exchange Board of India has exercised its powers conferred under section 11, 11A (2), and section 30 of the SEBI Act 1992, together with section 31 of SCRA 1956, and issued a notification dated 08.01.2021, wherein it sought to amend the prevailing laws with the new ones. That means the newly introduced SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations 2021 have replaced some of the provisions of the prevailing SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.<\/p>\n\n\n\n<p>Moreover, it shall be pertinent to note\nthat these regulations came into force after that last amendment made, i.e., SEBI\n(Listing Obligations and Disclosure Requirements) (Third Amendment) Regulations\n2020, on 08.10.2020.<\/p>\n\n\n\n<p>Further, the said rules will come into force from the date of publication in the official gazette. Also, the term <strong>SCRA stands for Securities Contracts (Regulations) Act 1956<sup><a class=\"text-primary\" href=\"https:\/\/www.sebi.gov.in\/acts\/contractact.pdf\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/strong>.<\/p>\n\n\n\n<p>In this blog, we will discuss the key Changes Made in SEBI 2021 (Listing Obligations and Disclosure Requirements) (Amendment) Regulations 2021.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3abb6ee3664\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3abb6ee3664\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-sebi-listing-obligations-and-disclosure-requirements-amendment-regulations-2021\/#Features_of_SEBI_Listing_Obligations_and_Disclosure_Requirements_Regulations_2015\" title=\"Features of SEBI (Listing Obligations and Disclosure Requirements) Regulations\n2015\">Features of SEBI (Listing Obligations and Disclosure Requirements) Regulations\n2015<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-sebi-listing-obligations-and-disclosure-requirements-amendment-regulations-2021\/#Changes_Made_in_SEBI_Listing_Obligations_and_Disclosure_Requirements_Amendment_Regulations_2021\" title=\"Changes Made in SEBI (Listing Obligations and Disclosure\nRequirements) (Amendment) Regulations 2021\">Changes Made in SEBI (Listing Obligations and Disclosure\nRequirements) (Amendment) Regulations 2021<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-sebi-listing-obligations-and-disclosure-requirements-amendment-regulations-2021\/#Amendment_Made_in_Sub-clause_l_of_Clause_16_Part_A_of_Schedule_III\" title=\"Amendment Made in Sub-clause (l) of\nClause 16, Part A of Schedule III\">Amendment Made in Sub-clause (l) of\nClause 16, Part A of Schedule III<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-sebi-listing-obligations-and-disclosure-requirements-amendment-regulations-2021\/#Insertion_of_Sub-clause_n_o_and_p_in_Point_A_of_Clause_16_inPart_A_of_Schedule_III\" title=\"Insertion of Sub-clause (n), (o), and\n(p) in Point A of Clause 16 inPart A of Schedule III\">Insertion of Sub-clause (n), (o), and\n(p) in Point A of Clause 16 inPart A of Schedule III<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-sebi-listing-obligations-and-disclosure-requirements-amendment-regulations-2021\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-sebi-listing-obligations-and-disclosure-requirements-amendment-regulations-2021\/#Copy_of_the_Official_Notification\" title=\"Copy of the Official Notification\">Copy of the Official Notification<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features_of_SEBI_Listing_Obligations_and_Disclosure_Requirements_Regulations_2015\"><\/span>Features of SEBI (Listing Obligations and Disclosure Requirements) Regulations\n2015<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The brief feature of the SEBI (Listing\nObligations and Disclosure Requirements) Regulations 2015 are as follows: <\/p>\n\n\n\n<ol><li>The time limit to adhere to these regulations was of 90 Days, starting from the date it became effective, i.e., 01.12.2015;<\/li><li>The regulations have been designed and structured in such a way that they are in consonance with the provisions of the Companies Act 2013;<\/li><li>To avoid any sort of overlapping and confusion, these regulations prescribe both pre and post listing requirements;<\/li><li>The said listing regulations have been bifurcated into two parts as follows:<\/li><li>Substantive Provisions (contained in the main regulations);<\/li><li>Procedural Provisions (contained in the schedules);<\/li><\/ol>\n\n\n\n<p>Applicability of SEBI\n(Listing Obligations and Disclosure Requirements) Regulations 2015<\/p>\n\n\n\n<p>The said regulations are made applicable\nto all the listed entities which have listed there any of the designated\nsecurities as follows on RSE (Recognised Stock Exchange):<\/p>\n\n\n\n<ol><li>Specified\nSecurities that are listed on either of the following platforms:<\/li><li>Main\nBoard;<\/li><li>SME\nExchange;<\/li><li>Institutional\nTrading Platform;<\/li><li>Indian\nDepository Receipts (IDR);<\/li><li>Securitized\nDebt Instruments;<\/li><li>Non-Convertible\nDebt Securities;<\/li><li>Non\n\u2013convertible Redeemable Preference Shares;<\/li><li>Perpetual\nDebt Instrument;<\/li><li>Perpetual\nNon-cumulative Preference Shares;<\/li><li>Units\nissued by Mutual Funds; and<\/li><li>Any\nother security as may be prescribed by the Board, i.e., SEBI;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Changes_Made_in_SEBI_Listing_Obligations_and_Disclosure_Requirements_Amendment_Regulations_2021\"><\/span>Changes Made in SEBI (Listing Obligations and Disclosure\nRequirements) (Amendment) Regulations 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key Changes Made in SEBI 2021 (Listing Obligations and Disclosure Requirements) (Amendment) Regulations are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Changes-Made-in-SEBI-Listing-Obligations-and-Disclosure-Requirements-Amendment-Regulations-2021.png\" alt=\"Changes Made in SEBI Regulations 2021\" class=\"wp-image-1610\" width=\"705\" height=\"347\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Changes-Made-in-SEBI-Listing-Obligations-and-Disclosure-Requirements-Amendment-Regulations-2021.png 700w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Changes-Made-in-SEBI-Listing-Obligations-and-Disclosure-Requirements-Amendment-Regulations-2021-300x148.png 300w\" sizes=\"(max-width: 705px) 100vw, 705px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Amendment_Made_in_Sub-clause_l_of_Clause_16_Part_A_of_Schedule_III\"><\/span>Amendment Made in Sub-clause (l) of\nClause 16, Part A of Schedule III<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As per the new regulations passed, SEBI\nhas amended the Sub-clause (l) of Clause 16, Part A of Schedule III and has\nsubstituted the same with some particular features and details of the\nresolution plan. These details and features are approved by the Adjudicating\nAuthority established under the Insolvency and Bankruptcy Code 2016.<\/p>\n\n\n\n<p>Further, such specific features will not\ninclude Commercial Secrets and other details as follows:<\/p>\n\n\n\n<ol><li>Pre\nand Post Net Worth of the Company;<\/li><li>Details\nof the Company\u2019s Asset post CIRP (Corporate Insolvency Resolution Process);<\/li><li>Details\nof all the Securities that continue to be imposed on the assets of the Company;<\/li><li>Any\nother form of Material Liability imposed on the said Company;<\/li><li>Detailed\nform of Pre and Post Shareholding Pattern supposing 100%conversion of the\nConvertible Securities;<\/li><li>Details\nconcerning the Funds infused in the Company and Creditors paid-off;<\/li><li>Additional\nLiability concerning the Incoming Investors owing to the transaction and source\nof such funding;<\/li><li>Impact\non the Investor of the revised P\/E (Price Earing), RONW (Return on Net Worth)\nratios;<\/li><li>Names\nand Details of the New Promoters, KMPs (Key Managerial Personnel), together\nwith their past experience in the employment or business;<\/li><li>If\nin case Promoters are a company, the, in that case, history and background of\nsuch a company, together with the names and details of the people in control;<\/li><li>A\nBrief summary of the business strategy involved;<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insertion_of_Sub-clause_n_o_and_p_in_Point_A_of_Clause_16_inPart_A_of_Schedule_III\"><\/span>Insertion of Sub-clause (n), (o), and\n(p) in Point A of Clause 16 inPart A of Schedule III<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The new regulations, i.e., SEBI (Listing\nObligations and Disclosure Requirements) (Amendment) Regulations 2021 have\nfurther mentioned about the insertion of sub clause (n), (o), (p), in the point\nA of Clause 16 in Part A of Schedule III. The new provisions inserted are as\nfollows:<\/p>\n\n\n\n<ul><li>For\nachieving the MPS (Minimum Public Shareholding), all the incoming investor or\nacquirer needs to undertake the steps proposed;<\/li><li>Quarterly\nDisclosure concerning the status of achieving the Minimum Public Shareholding;<\/li><li>Details\nconcerning Delisting of Plans, if in case approved by the Resolution Plan;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the main aim behind the implementation of SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations 2021 was to replace some of the provisions specified under the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. Also, the Changes Made in SEBI 2021 or the features included are duly approved by the Adjudicating Authority established under the Insolvency and Bankruptcy Code 2016. <\/p>\n\n\n\n<p>Further, in case of any other doubt or query, reach out to <strong><a href=\"https:\/\/swaritadvisors.com\/\" class=\"text-primary\">Swarit Advisors,<\/a><\/strong> our proficient Company and SEBI Law experts will solve out all your doubts and will assist in providing details concerning different types of shares as well.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Copy_of_the_Official_Notification\"><\/span>Copy of the Official Notification<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/SEBI-LODR-2021.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">SEBI-LODR-2021<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the Securities Exchange Board of India has exercised its powers conferred under section 11, 11A (2), and section 30 of the SEBI Act 1992, together with section 31 of SCRA 1956, and issued a notification dated 08.01.2021, wherein it sought to amend the prevailing laws with the new ones. That means the newly introduced [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1607,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50,64],"tags":[374],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1604"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1604"}],"version-history":[{"count":5,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1604\/revisions"}],"predecessor-version":[{"id":1613,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1604\/revisions\/1613"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1607"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}