SEBI unveils norms for disclosure of pledged shares

Following its decision at a board meeting held on January 21, SEBI, vide a notification dated 28th January, 2009, has come out with the norms for disclosure about pledged promoter shares. Certain amendments have been made to the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.

The promoter should within seven working days of commencement of this amendment, should disclose the details of shares of that company pledged by him, if any, to that company.
The promoter should within 7 working days from the date of creation of pledge on shares of that company held by him or from the date of invocation of pledge on shares of that company pledged by him, inform the details of such pledge of shares to that company.
Companies should disclose all the details pertaining to the promoters’ share pledge, if at the end of any quarter, the total number of such pledged shares exceeds 25,000 or one percentage of the total shareholding, whichever is lower.