Amendment to clause 35 of Listing Agreement

Securities and Exchange Board of India (SEBI) at its Board Meeting held on 4 August 2010 has taken the decisions relating to the format, frequency of filing of shareholding pattern under clause 35 of the listing agreement. The decisions taken by the SEBI are summarised below:

• Amendment to the format of disclosure under clause 35:-Currently custodians are classified as a separate category other than promoters and non – promoters. Henceforth, shares held by custodians shall be disclosed as a part of the promoter/ promoter group and non – promoter as the case may be.

• Disclosure requirement prior to commencement of trading of shares:-Every company shall now be required to file the shareholding pattern as per clause 35 of the listing agreement with the exchanges one day prior to the commencement of trading of shares issued pursuant to an initial public offer.

• Filing revised shareholding pattern:-Currently, any change exceeding +!- 2 percent of the paid up capital, companies are required to disclose the same under regulation 7(3) of the SEBI (Substantial Acquisition of shares and Takeover) Regulations to the exchanges where the shares of the company are listed. In addition to the above disclosure, the company shall also be required to file updated shareholding pattern as per the format specified under clause 35 of the listing agreement within 10 days of change in the shareholding pattern of the company for any change exceeding +!- 2 percent of the paid up capital by further issue of shares, conversion of convertible instrument, issue of ESOPs, capital reduction, buy back etc.