SEBI notifies amendments to equity listing agreement

Market regulator Securities and Exchange Board of India (SEBI) has announced certain changes in the Listing Agreement as part of its efforts to streamline rules.

SEBI has now allowed listed companies to place equity with financial institutions to achieve the minimum level of public shareholding, in addition to the existing methods.

''The listed company may also achieve the minimum level of public shareholding through institutional placement programme in terms of Chapter VIII-A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended,'' SEBI said in a release.

SEBI had, on 1 February 2012, issued a circular detailing the placement route for sale of shares by promoters through stock exchanges.

In order to enhance disclosure requirements, listed entities have been mandated to disclose utilisation of funds raised upon conversion/ exercise of warrants issued along with public or rights issue of specified securities.

This circular is applicable with immediate effect, SEBI said.

The listing conditions would form part of the existing Listing Agreement and SEBI has asked all stock exchanges to ensure compliance and carry out amendments in their Listing Agreement accordingly.