Addendum to Circular No. MRD/DP/21/2012, dated 2-8-2012 on activation of ISIN in case of additional issue of shares/securities

CIRCULAR no. MRD/DP/24/2012, dated 11-9-2012

1. Please refer to SEBI circular MRD/DP/21/2012 dated August 02, 2012 on activation of ISIN in case of additional issue of shares/securities.

2. In partial modification, the earlier point 3 and 5 of the aforesaid circular shall be replaced as under –

“3. Further, in order to curtail the transfer of additional issue of shares/securities including by way of further public offerings, rights issue, preferential allotment, bonus issue etc of the listed company, prior to receipt of final listing/trading approval, the depositories shall devise a mechanism so that such new securities created shall be frozen till the time final listing/ trading permission is granted by the exchange.”

“5. The stock exchanges are advised to provide the details to the depositories whenever final listing/trading permission is given to securities. Further, in case of issuance of equity shares by a company, listed on multiple stock exchanges, the concerned stock exchanges shall synchronize their effective dates of listing/trading approvals and intimate the same to depositories in advance.”

3. The Depositories are advised to:-

(a)  make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary;

(b)  bring the provisions of this circular to the notice of their DPs and also to disseminate the same on their website.

4. This circular is being issued in exercise of the powers conferred by section 11 (1) of Securities and Exchange Board of India Act, 1992 and section 19 of the Depositories Act, 1996 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

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