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Clause 49 of the Listing Agreement

udit sharma (Company Secretary) (2303 Points)

24 December 2010

Hi... Please someone explain me the meaning of term'Material non listed Indian Subsidiary' as per Listing Agreement in simple words. If possible, please explain it with the help of an example.

God Bless

Udit Sharma

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2 Replies

Shweta Bansal (CA) (175 Points)
Replied 24 December 2010

The term “material nonlisted Indian subsidiary” shall mean an unlisted subsidiary, incorporated in India, whose turnover or net worth (i.e. paid-up capital and free reserves) exceeds 20% of the consolidated turnover or net worth respectively, of the listed holding company and its subsidiaries in the immediately preceding accounting year.

Hope this has helped

Rajeev kumar Nayak (ACS) (283 Points)
Replied 24 December 2010

As per Clause 49 of the LA, Material Non-Listed Subsidiary Company means a subsidiary Company of a Listed company which satisfied either of the following conditions:

1. Such subsidiary is incorporated in India.

2. Turnover or net worth (Paid up capital + free reserve) of such subsidiary exceeds 20 % of turnover or net worth respectively of listed holding company and all its subsidiary including material non listed subsidiary company.

i.e Turnover or net worth of Material non listed subsidiary co. > 20 % of Turnover or net worth of Listed Holding co. and all its subsidiaries

Rajeev Nayak