SEBI Revamps Shareholding Disclosure Norms for Enhanced Transparency

SEBI has updated the disclosure requirements for shareholding patterns to provide improved clarity and transparency. Changes include disclosures of non-disposal undertakings and shares on a fully diluted basis. These requirements will be effective from June 2025, ensuring better alignment with market needs.

The Securities and Exchange Board of India (SEBI) has announced significant changes to the disclosure requirements concerning shareholding patterns. The update is part of an effort to enhance transparency and clarity for investors.

According to a circular released by SEBI, listed entities must now disclose details of non-disposal undertakings (NDUs), additional encumbrances, and the total count of shares pledged, factoring in NDUs. A new column will also account for the total number of shares on a fully diluted basis, integrating warrants, ESOPs, and convertible securities.

The revised format, set to be implemented by the quarter ending June 30, 2025, specifies that even promoter group entities with no shareholding must be recorded. SEBI has instructed stock exchanges to inform listed companies about these changes and has directed depositories to adjust their systems accordingly, adapting to the evolving demands of the securities market.

(With inputs from agencies.)