Section 16 of The Companies Act, 2013
Change in name of the listed entity.
45. (1) The listed entity shall be allowed to change its name subject to compliance with the following conditions:
(a) a time period of at least one year has elapsed from the last name change;
(b) at least fifty percent. of the total revenue in the preceding one year period has been accounted for by the new activity suggested by the new name;or
(c)the amount invested in the new activity/project is atleast fifty percent. of the assets of the listed entity:
Provided that if any listed entity has changed its activities which are not reflected in its name, it shall change its name in line with its activities within a period of six months from the change of activities in compliance of provisions as applicable to change of name prescribed under Companies Act, 2013.
Explanation.- For the purpose of this regulation, –
(i) ‘assets’ of the listed entity means the sum of fixed assets, advances, works in Progress / Inventories, investments, trade receivables, cash & cash equivalents;
(ii) ‘advances’ shall include only those amounts extended to contractors and suppliers towards execution of project, specific to new activity as reflected in the new name.
(2) On satisfaction of conditions at sub-regulation (1), the listed entity shall file an application for name availability with Registrar of Companies.
(3) On receipt of confirmation regarding name availability from Registrar of Companies, before filing the request for change of name with the Registrar of Companies in terms of provisions laid down in Companies Act, 2013 and rules made thereunder, the listed entity from Stock Exchange by submitting a certificate from chartered accountant stating compliance with conditions at sub-regulation (1).
- Extension vide SEBI Circular dated 26.03.2020 provided for implementation of circular on non-compliance with certain provisions of the SEBI LODR and the Standard Operating Procedure for suspension and revocation of trading of specified securities dated 22.01.2020. The revised implementation date is for compliance periods ending on or after June 30, 2020 from earlier date of March 31, 2020. To view the circular, Click Here.
- Refer SEBI Circular on non-compliance with certain provisions of the SEBI LODR and the Standard Operating Procedure for suspension and revocation of trading of specified securities dated 22.01.2020 to be implemented for compliance periods ending on or after March 31, 2020. To view the circular Click Here