On 2-1-2023, the Ministry of Finance has notified the Securities Contracts (Regulation) Amendment Rules, 2022 to amend the Securities Contracts (Regulation) Rules, 1957. The provisions of this circular came into effect on 2-1-2023.
Key Points:
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Earlier, “Government Company” meant a company in which not less than 51% of the share capital is held by Central Government (‘CG’) / State Government (‘SG’)/ partly by CG and partly by one or more SG.
Now, after the amendment, “Government Company” means a company as defined in Section 2(45) of the Companies Act, 2013. According to the Companies Act, 2013, the capital is paid up share capital and 51% of such capital is held by CG/ SG/ partly by CG and partly by one or more SG and also includes a company which is a subsidiary company of such Government company.
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In Rule 19A (Continuous Listing Requirement), Sub-rule (6) has been substituted. Earlier, the CG, in the public interest, had the power to exempt any public sector company from any/ all provisions of thisRule.
Now, the CG, in the public interest, can exempt any listed company in which the CG/ SG/ public sector company, individually or in combination, holds direct or indirect, majority of shares/ voting rights/ control of listed entity from any/ all provisions of this Rule.
*Kriti Kumar, Editorial Assistant has reported this brief.