SEBI vide Notification No. SEBI/LAD/NRO/GN/2016-17/025 on Wednesday, 4th January, 2017 notified Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Third Amendment) Regulations, 2016 which shall come into force on the date of publication in Official Gazette i.e. 3rd January, 2016; hereby undertaking following amendments in the Regulation 26:
- the title is substituted with “Obligations with respect to employees including senior management, key managerial persons, directors and promoters”
- inserting sub-regulation (6), which states that no employee including KMP or director or promoter of a listed entity enter into any agreement for compensation or profit sharing in connection with dealings in the securities of such listed entity, directly or indirectly, with any shareholder or any other third party, unless prior approval for the same has been obtained from the Board of Directors & public shareholders by way of an ordinary resolution.
Further, all such agreement entered during the preceding 3 yrs from this date of publication, shall be disclosed to Stock Exchange and subsisting agreement to be placed before forthcoming Board Meeting & General Meeting for approval. Also, all interested persons involved in transaction covered in said agreement shall be abstain from voting in General Meeting.
The said Notification of SEBI is available at the following link:SEBI Noti-LODR 3rd Amendmt_04.01.2017