Summary of the circular issued by SEBI on 07/03/2022
Amendments to System Driven Disclosure requirements under Takeover Code, 2011 w.e.f 01/07/2022
SEBI vide its notification dated 13/08/2021 amended Takeover Code doing away with disclosure requirement w.r.t encumbered shares where such encumbrance is undertaken in a depository. This circular prescribes list of transactions where manual disclosures shall be filed.
The depositories shall also devise an appropriate mechanism to record all types of outstanding encumbrances in the depository system by June 30, 2022. Further, the Market Institutions such as Depositories and Stock Exchanges shall co-ordinate for data dissemination w.r.t SDD amongst them. Reconciliation of such data shall be conducted by listed companies, stock exchanges and depositories at least once in a quarter or immediately whenever a discrepancy is noticed.