SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
The President/Executive Director/Managing Director
of All the Stock Exchanges.
Sub : Amendment to the listing agreement – Clause 32 and Clause 41 related to disclosure of turnover and income from new business subsequent to change in name.
This is in continuance to our circular dated April 07, 1998 pertaining to amendments in the Listing Agreement to incorporate disclosure requirements.
A recent phenomena has been noticed that a large number of companies are changing their names to suggest that they have entered in software/information technology business. It is felt that the investor should have complete disclosures about the new activities of such companies in order to make informed decisions.
The Exchanges are advised to amend Clause 32 and 41 of the Listing Agreement to provide that companies who changed their name suggesting any new line of business (including software business), shall disclose the turnover and income, etc., from such new activities separately in the quarterly/annual results required to be submitted / published in compliance with these clauses. Companies which have changed their names after January 1, 1998 or change the name hereafter, shall make such disclosures and shall continue to make these disclosures for a period of 3 years from the date of change in the name.
The aforesaid amendments shall be made effective from the year/quarter ending March 31, 1999 for annual and quarterly disclosures.
P K BINDLISH
Secondary Market, Depository
Research & Publications Department
E-mail : [email protected]