Sebi proposes easier rules to reclassify promoters as public shareholders
Under the proposal, in all cases of re-classification of promoters, including the recommendation of the board, would be required to be placed by the listed entity before the shareholders in a general meeting and approved through an ordinary resolution. "In order to avoid conflict of interest, it is proposed that the specific promoter who has requested such reclassification, its promoter group and persons acting in concert shall not be permitted to vote on such resolution," Sebi said in a draft papers.
Markets regulator Sebi today came out with proposals to simplify existing framework on re-classification of promoters as public shareholders. Image source: Reuters