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Securities and Exchange Board of India

Deputy General Manager

Market Regulation Department

Tel : 22164465 Fax: 22164494


October 28, 2003

The Executive Directors/Managing Director/Administrators

of All Stock Exchanges

Dear Sir,

Sub : Disclosure regarding change in shareholding pattern, to the stock exchange(s).

1. Companies, whose securities are listed on the stock exchange(s) are required to submit information on the captioned subject, to the stock exchange(s), at periodic intervals, inter-alia, under the following provisions :

i. Clause 35 of the listing agreement.

ii. Regulation 13 of the SEBI (Prohibition of Insider Trading) Regulations, 1992

iii. Regulation 7 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997

2. It has come to SEBI’s notice that some companies are not submitting information to the stock exchange(s) as required under the above provisions, more specifically, information regarding sales by the concerned persons/entities. Moreover, exchanges do not appear to have a system for monitoring the extent of compliance.

3a. The stock exchanges are therefore advised to draw the attention of the listed companies to the aforesaid provisions and the need for effective compliance with the said provisions.

3b. The stock exchanges shall also put in place a system for monitoring the compliance of the aforesaid disclosure requirements by the listed companies.

3c. The stock exchanges shall also take suitable steps for initiating action against companies for non-compliance, if any, with the aforesaid disclosure requirements.

4.  The Stock Exchanges are directed to communicate to SEBI, the status of the implementation of the provisions of the above directions in Section II, item no. 13 of the Monthly Development Report for the month of November, 2003.

Yours faithfully,



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