Sebi on Monday asked entities acquiring substantial shares in listed companies to make additional disclosures regarding pledging of scrips, a move that will help investors to make an informed decision.
“In order to ensure that adequate disclosures are made to help investors in taking an informed decision, it has been decided to modify the formats for disclosures” under relevant clauses of the Substantial Acquisition of Shares and Takeovers Regulations, Sebi said in a circular.
These disclosures are required to be made by any entity hiking its stake to five per cent or more in a listed company, while entities already holding five per cent stake are also required to make disclosures at the time of every purchase of two per cent of more stake.
Besides, additional disclosures are required for encumbered or pledged shares.