Lawyer Monthly Magazine August 2020 Edition

12 WWW.LAWYER-MONTHLY.COM | AUG 2020 REGULATORY UPDATE OF THE MONTH REGULATORY UPDATE OF THE MONTH From Clasis Law 1 “frequently traded shares” means the shares of the issuer, in which the traded turnover on any recognised stock exchange during the 12 calendar months preceding the relevant date, is at least 10% of the total number of shares of such class of shares of the issuer: Provided that where the share capital of a particular class of shares of the issuer is not identical throughout such period, the weighted average number of total shares of such class of the issuer shall represent the total number of shares. 2 Text of the relevant SEBI notification can be accessed at the following link: https://www.sebi.gov.in/legal/regulations/jun-2020/securities-and-exchange-board-of-india-substantial-acquisition-of-shares-and-takeovers-amendment-regulations-2020_46884.html 3 Text of the relevant SEBI notifications can be accessed at the following links: https://www.sebi.gov.in/legal/regulations/jun-2020/securities-and-exchange-board-of-india-issue-of-capital-and-disclosure-requirements-second-amendment-regulations-2020_46907.html https://www.sebi.gov.in/legal/regulations/jun-2020/securities-and-exchange-board-of-india-substantial-acquisition-of-shares-and-takeovers-second-amendment-regulations-2020_46908.html 4 A listed company would need to satisfy any two of the conditions set out below: (a) Such listed company has made disclosure of defaults on payment of interest/ repayment of principal amount on loans from banks / financial institutions/Systemically Important Non-Deposit taking Non- banking financial companies/ Deposit taking Non-banking financial companies and /or listed or unlisted debt securities (in terms of SEBI Circular dated 21 November 2019) in last 90 days; (b) There is an inter-creditor agreement in terms of Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions 2019 dated 7 June 2019; and (c) The credit rating of the financial instruments (listed or unlisted), credit instruments / borrowings (listed or unlisted) of such listed company has been downgraded to “D”. 5 Text of the relevant SEBI notification can be accessed at the following link: https://www.sebi.gov.in/legal/regulations/jul-2020/securities-and-exchange-board-of-india-issue-of-capital-and-disclosure-requirements-third-amendment-regulations-2020_46991.html