The Securities and Exchange Board of India (SEBI) had issued Circular No. CFD/DIL3/CIR/2017/21 dated March 10, 2017 which had laid down the framework for Schemes of Arrangement by Listed Entities and relaxation under Rule 19 (7) of the Securities Contracts (Regulation) Rules, 1957.
SEBI has received representations suggesting improvements to the existing regulatory framework governing scheme of arrangement. Considering the above and in order to expedite the processing of draft schemes and to prevent misuse of schemes to bypass regulatory requirements, it has been decided to make certain amendments to the Circular No. CFD/DIL3/CIR/2017/21 dated March 10, 2017, as follows:
· Amendment to Para 7
· Insertion of Para (I)(A)(2A)
· Amendment to Para(I)(A)(3)(b)
· Deletion of Para (II)
· Amendment to Para(III)(A)(3)
· Deletion of Para (III)(A)(4)
· Amendment to Para(III)(A)(5)
The Stock Exchanges are advised to bring the provisions of this circular to the notice of Listed Entities and also to disseminate the same on their websites.
This circular is issued under Section 11 of the SEBI Act, 1992 and Regulations 11, 37 and 94 read with Regulation 101(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Rule 19(7) of Securities Contracts (Regulation) Rules, 1957.