Streamlining the disclosure norms about substantial acquisition of shares in listed companies, markets regulator Sebi today directed the acquirers to report compliance to shareholding and control norms for past three years.
Currently, there is no specific time period for reporting of such compliance.
The regulator said acquirer will have to make disclosure that the transferor and transferee have complied (during three years prior to date of proposed acquisition)/ will comply with applicable disclosure requirements under the Takeover Regulations, 2011.
The disclosures will have to be made during previous three years prior to the date of proposed acquisition to be furnished, it added.
The entities are required to make these disclosures to the stock exchanges, where the target company is listed.
"While filing the reports, the acquirers are required to report compliance under Chapter V of the regulations. However, there is no specific time period mentioned in the formats for reporting of such compliance. In order to bring it in line with the requirement...It is necessary that the compliance should be reported for a period of three years," Securities and Exchange Bord of India (Sebi) said.
Under Chapter V, disclosures need to be made about aggregated shareholding and voting rights of the acquirer or promoter of the target company or every person acting in concert with him.
The acquisition and holding of any convertible security shall also be regarded as shares, and disclosures of such acquisitions and holdings would be made accordingly.
