RETURN OF CHANGES IN SHAREHOLDINGS

{Update: After passing the Companies Amendment Act, 2017, with effect from 14th June 2018 Section 93 of the Companies Act, 2013 and corresponding Rule 13 of the Companies (Management and Administration) Rules 2014, along with its Form MGT – 10 was omitted. These omitted provisions were in force from 1st April 2014 to 13th June 2018.}

According to Section 93 of the Companies Act, 2013, every listed company shall file a return with the Registrar with respect to change in the number of shares held by promoters and top ten shareholders of such company, within fifteen days of the change.

According to Rule 13 of the Companies (Management and Administration) Rules 2014, Every listed company shall file with the Registrar, a return in Form MGT – 10 along with the fee with respect to changes relating to either increase or decrease of two percent or more in the shareholding position of promoters and top ten shareholders of the company in each case, either value or volume of the shares, within fifteen days of such change.

This is important to note this percentage shall be counted not on the shareholding of the shareholders but paid up capital of the company.

Form MGT – 10:

Changes in shareholding position of promoters and top ten shareholders

This form require following important details:

Name of Stock Exchanges where the shares of the company are listed:

Details of change in shareholding position of promoters:

1. Name of Promoter,
2. Number of shares held before change,
3. Percentage of shareholding before the change,
4. Change in shareholding in number of shares (Increase or Decrease by using (+) or (-) sign,
5. Number of shares held after the change,
6. Percentage of shareholding after the change,
7. Reason for change,
8. Number of shares pledged/ encumbered after the change,
9. Remark

Details of change in shareholding position of top ten share holders:

1. Name of Promoter,
2. Number of shares held before change,
3. Percentage of shareholding before the change,
4. Change in shareholding in number of shares (Increase or Decrease by using (+) or (-) sign,
5. Number of shares held after the change,
6. Percentage of shareholding after the change,
7. Reason for change,
8. Number of shares pledged/ encumbered after the change,
9. Remark

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