SEBI to Enhance Promoter’s Shareholding

Published on June 20, 2020
Current Context: The Securities Exchange Board of India (SEBI) has amended regulation (3) in sub-regulation (2) of SEBI-Substantial Acquisition of Shares and Takeovers regulations, 2011 (SEBI-SAST) in order to enhance acquisition limit of promoters.
SEBI to Enhance Promoter’s Shareholding

  • This amendment will be termed as SEBI-SAST Amendment Regulations, 2020.
  • As per this amendment, the promoters who are owning 25% or more shares or voting rights in a company can increase their shareholding up to 10% in a year. Earlier an increase of 5% was allowed. 
  • SEBI has also relaxed the condition of the time gap between two qualified institutional placements (QIPs) from 6 months to 2 weeks.
  • Static Part: 
    • HQ of SEBI: Mumbai
    • Chairman of SEBI: Ajay Tyagi

Question: 

Q.1 As per SEBI’s recent amendment promoters who are owning 25% or more shares or voting rights in a company can increase their shareholding up to ____% in a year?
a. 20%
b. 10%
c. 25%
d. 5%

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