Market regulator Securities and Exchange Board of India (Sebi) today asked all the listed companies to disclose pledging of shares by their promoters in their quarterly shareholding pattern as well as financial results reporting from the current quarter onwards.
The amendment in the related Sebi regulations to this effect follows an amendment announced last week that requires the companies to disclose pledging of promoter shares, if any, within seven days.
The latest one is aimed at bringing more transparency in the shareholding pattern of promoters and thus protecting the interest of stock market investors.
Sebi had amended Clause 35 of the Equity Listing Agreement, which deals with the format for reporting the shareholding pattern of a company, to include details of shares pledged by the promoter and promoter group entities.
At the same time, amendment has also been made to the Clause 41, which deals with the format for submitting the quarterly financial results of a company, to include the details of shareholding pattern of promoters and promoter group, including details of pledged shares, if any.
The reporting, as per the revised formats for shareholding patterns and financial results, should start from the quarter ending March 31, 2009, Sebi said in a circular.
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It added that the report for the four financial quarters of this calendar year might not contain details of pledged shares for the corresponding quarter of the previous year.
Sebi has also asked the stock exchanges to revert on the status of implementation in their next monthly development report to the regulator.