New clauses in amended listing agreement with unifying provi

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For more and exact details please find enclosed herewith the amendment in Listing Agreement notification.

Best Regards

The newly inserted clause 5A of listing agreement requires the issuer company to transfer unclaimed shares to “ Unclaimed shares Suspense Demat a/c”  after giving 3 reminders at the address given in the application form as well as address captured in the depository’s data base.

After issuing reminders, if there is no response from the shareholders, the issuer company shall transfer such unclaimed shares in physical form into one folio in the name of unclaimed suspense account and there after demateralise those shares with one of the depositories participant.

All the corporate benefits ( such as bonus, split) accruing on those shares shall also be credited to such unclaimed suspense account. Such unclaimed shares in the suspense account shall be transferred to the claimant as and when there is a claim subject to verification of such claims.

The issuer Company shall maintain the full particulars of the folios/shareholders  at its end before dematerializing those shares and it has to disclose the details of those shares in its annual report.

The claim of shareholders/legal heirs can be entertained subject to the issuer company being satisfied about the genuineness of claim.

SEBI”S initial circular refers to unclaimed shares arising out of public issues. But if one goes by the intention of the amendment, it is the objective of enforcing uniform practice with regard to all unclaimed shares. The important implications of the amendment are to freeze the voting rights and disclosure of suspense a/c to shareholders to alert, if any one missed it earlier.