valid as on 10/10/2019

Regulation 31. Disclosure of encumbered shares
Effective date 23.10.2011

Disclosure of encumbered shares.

31. (1) The promoter of every target company shall  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.

  1. Refer NSE Guidance note on reason for Encumbrance dated 27.09.2019 . To view the Guidance Note. Click Here.
  2. NSE has directed all the companies to intimate their promoters to comply with the SEBI (Substantial Acquisition of shares and takeovers) Regulation, 2011 and SEBI Circular dated August 05, 2015 for any filing made by the Promoters vide its Circular dated 18.02.2019 . To view the Circular, Click Here.
  3. SEBI directs that the Promoters of every listed company should specifically disclose detailed reasons for encumbrance if the combined encumbrance by the promoter along with PACs with him equals or exceeds:
    a) 50% of their shareholding in the company; or
    b) 20% of the total share capital of the company vide its Circular dated 07.08.2019 w.e.f., 01.10.2019. To view the Circular, Click Here

Circular on disclosure of reasons for encumbrance by promoter of listed companies dated 07.08.2019 w.e.f., 01.10.2019


NSE Circular relating to deficiencies in disclosures related to Pledge of Shares dated 18.02.2019


NSE Guidance note on reason for Encumbrance dated 27.09.2019


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