Transferability of locked in shares

Save Share

This query is : Resolved

nidhi agarwal (Querist)

10 January 2013 Dear All Experts,

Under Preferential allotment of conversion of warrants If a a body corporate become a promoters after allotment of convertible warrants on September 2010 and the shares under lock in period than in this case can the promoter transfer the shares to another promoters.

Regards
Nidhi Agarwal

Ajay Mishra

Ajay Mishra (Expert)

11 January 2013 Hi

If your company is listed company, then check the lock in period upto which the shares are locked by CDSL or NSDL. During lock in the promoter can not transfer any right of shares to any one.

nidhi agarwal

nidhi agarwal (Querist)

11 January 2013 Sir,

But According to under regulation 40 of ICDR regulation the Inter se transfer can be done for listed company.

Ajay Mishra

Ajay Mishra (Expert)

11 January 2013 Hi

As per our understanding transfer will not be effected during lock in of shares. Please check transaction statement of that promoter. Lock-in shares is not eligible under transfer. Please also check ICDRA Regulation on pref allotment.

nidhi agarwal

nidhi agarwal (Querist)

11 January 2013 Sir,

Plz go through this link.

https://www.sebi.gov.in/acts/icdrreg09.pdf

Ajay Mishra

Ajay Mishra (Expert)

11 January 2013 Hi

Please read sub regulation (6) of Regulation 78.

We already face the same problem and discussed with NSE and BSE on the same. The will not approve transfer during locking of that shares.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now