Regulations 31 of the SEBI(Substantial Acquisition of Shares and Takeover) Regulations, 2011 requires promoters of target company to make certain disclosures about their encumbered shares in the prescribed formats.

In this regard, so as to ensure that adequate disclosures are made to help investors in taking an informed decision, SEBI modified the formats for disclosures under the said Regulation.

The detailed text of the regulation is reproduced hereunder:

“Regulations 31: Disclosure of encumbered shares:

(1) The promoter of every target company shall disclose details of shares in such target company encumbered by him or by persons acting in concert with him in such form as may be specified.

(2) The promoter of every target company shall disclose details of any invocation of such encumbrance or release of such encumbrance of shares in such form as may be specified.

(3) The disclosures required under sub-regulation (1) and sub-regulation (2) shall be made within seven working days from the creation or invocation or release of encumbrance, as the case may be to,—
(a) every stock exchange where the shares of the target company are listed; and
(b) the target company at its registered office.”

The SEBI Circular containing the modified format can be accessed at the following link: SEBI Revises Formats under Regulation 31 of SEBI (SAST) Regulations, 2011