SEBI issues amendment to LODR Regulations; monitoring report of monitoring agency appointed by listed entity has to be placed before the audit committee on a quarterly basis instead of annual basis
In continuation to what has been reported by us in the trailing e-mail, please see below the key takeaways of the amendment-
| Regulation | Principal Provision | Amendment | Implication |
| 32 | Statement of deviation(s) or variation(s)-
(7) Where the listed entity has appointed a monitoring agency to monitor the utilisation of proceeds of a public or rights issue, the monitoring report of such agency shall be placed before the audit committee on an annual basis, promptly upon its receipt. Explanation.- For the purpose of this sub-regulation, “monitoring agency” shall mean the monitoring agency specified in regulation 16 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. |
Statement of deviation(s) or variation(s)-
(7) Where the listed entity has appointed a monitoring agency to monitor the utilisation of proceeds of a public or rights issue, the monitoring report of such agency shall be placed before the audit committee on a quarterly basis, promptly upon its receipt.
Explanation.- For the purpose of this sub-regulation, “monitoring agency” shall mean the monitoring agency specified in regulation 16 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. |
With the present amendment gaining effect, in case the listed entity has as appointed a monitoring agency to monitor the utilisation of proceeds of a public or rights issue, the monitoring report of the monitoring agency has to be placed on a quarterly basis instead of the previous position of annual basis. |
| 39 | Issuance of Certificates or Receipts/Letters/Advices for securities and dealing with unclaimed securities-
(2)The listed entity shall issue certificates or receipts or advices, as applicable, of subdivision, split, consolidation, renewal, exchanges, endorsements, issuance of duplicates thereof or issuance of new certificates or receipts or advices, as applicable, in cases of loss or old decrepit or worn out certificates or receipts or advices, as applicable within a period of thirty days from the date of such lodgement. |
Issuance of Certificates or Receipts/Letters/Advices for securities and dealing with unclaimed securities-
(2)The listed entity shall effect issuance of certificates or receipts or advices, as applicable, of subdivision, split, consolidation, renewal, exchanges, endorsements, issuance of duplicates thereof or issuance of new certificates or receipts or advices, as applicable, in cases of loss or old decrepit or worn out certificates or receipts or advices, as applicable in dematerialised form within a period of thirty days from the date of such lodgement. |
As per the amendment the listed entity will now effect issuance of certificates or receipts or advices, as applicable, of subdivision, split, consolidation, renewal, exchanges, endorsements, issuance of duplicates thereof or issuance of new certificates or receipts or advices, as applicable, in cases of loss or old decrepit or worn out certificates or receipts or advices, as applicable in dematerialised form within a period of thirty days from the date of such lodgement |
| 40 | Transfer or transmission or transposition of securities-
(1)Save as otherwise specified in provisions of securities laws or Companies Act, 2013 and rules made thereunder, the listed entity shall also comply with the requirements as specified in this regulation for effecting transfer of securities Provided that, except in case of transmission or transposition of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in the dematerialized form with a depository. (3)On receipt of proper documentation, the listed entity shall register transfers of its securities in the name of the transferee(s) and issue certificates or receipts or advices, as applicable, of transfers; or issue any valid objection or intimation to the transferee or transferor, as the case may be, within a period of fifteen days from the date of such receipt of request for transfer:
Provided that the listed entity shall ensure that transmission requests are processed for securities held in dematerialized mode and physical mode within seven days and twenty one days respectively, after receipt of the specified documents: |
Transfer or transmission or transposition of securities-
(1)Save as otherwise specified in provisions of securities laws or Companies Act, 2013 and rules made thereunder, the listed entity shall also comply with the requirements as specified in this regulation for effecting transfer of securities Provided that requests for effecting transfer of securities shall not be processed unless the securities are held in the dematerialised form with a depository:
Provided further that transmission or transposition of securities held in physical or dematerialised form shall be effected only in dematerialised form
(3)On receipt of proper documentation, the listed entity shall register transfers of its securities in the name of the transferee(s) and issue certificates or receipts or advices, as applicable, of transfers; or issue any valid objection or intimation to the transferee or transferor, as the case may be, within a period of fifteen days from the date of such receipt of request for transfer:
Provided that the listed entity shall ensure that transmission requests are processed within seven days and after receipt of the specified documents: |
With reference to transfer or transmission or transposition of securities, now, with the present amendment gaining effect, the requests for effecting transfer of securities will not be processed unless the securities are held in the dematerialised form with a depository.
Further, now, the transmission or transposition of securities held in physical or dematerialised form must be effected only in dematerialised form.
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| Schedule VI | Manner Of Dealing With Unclaimed Shares
D. Procedure in case of claim by allottee (1) As and when the allottee approaches the listed entity, the listed entity shall, after proper verification of the identity of the allottee either credit the shares lying in the Unclaimed Suspense Account or demat suspense account, as applicable, to the demat account of the allottee to the extent of the allottee’s entitlement, or deliver the physical certificates after re-materialising the same, depending on what has been opted for by the allottee: Provided that the rematerialising of the physical certificates shall be done only in case where the shares were originally issued in physical form. |
Manner Of Dealing With Unclaimed Shares
D. Procedure in case of claim by allottee (1) As and when the allottee approaches the listed entity, the listed entity shall, after proper verification of the identity of the allottee either credit the shares lying in the Unclaimed Suspense Account or demat suspense account, as applicable, to the demat account of the allottee to the extent of the allottee’s entitlement |
The amendment does away with the requirement of delivering the physical certificates after re-materialising the same |
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