CERTAIN CLASS OF COMPANIES NOT TO BE CONSIDERED AS LISTED COMPANY – Eshwars
Call Us +91 44 42048335

CERTAIN CLASS OF COMPANIES NOT TO BE CONSIDERED AS LISTED COMPANY

The Ministry of Corporate Affairs, vide its notification dated 19th February 2021, has specified the following classes of companies which shall not be considered as listed companies for the purpose of Companies Act, 2013.

(a) The public companies which have not listed their equity shares on a recognized stock exchange but have listed their:

(i) non-convertible debt securities issued on private placement basis in terms of SEBI (issue and listing of debt securities) regulation, 2008; or

(ii) non-convertible redeemable preference shares issued on private placement basis in terms of SEBI (issue and Listing of Non- convertible Redeemable Preference Shares) Regulations, 2013; or

(iii) Both categories of (i) and (ii) above

(b) The private companies which has listed their non-convertible debt securities on private placement basis on recognised stock exchange in terms of SEBI ( Issue and Listing Of Debt Securities) Regulation, 2008;

(c) Public companies which have not listed their equity shares on recognised stock exchange but whose equity shares are listed on a stock exchange in a jurisdiction as specified in sub-section (3) of section 23 of the Act.

Effect of this amendment:

The Companies Act, 2013 make certain provisions specifically applicable to “Listed Companies”.

Prior to this amendment, every Company which had its securities other than equity shares listed on any stock exchange was also considered as a “Listed Company” for the purpose of Companies Act, 2013. This meant that these companies, even though not equity listed entities, were still required to comply with those provisions which are made applicable to “Listed Companies”.

Hence after this amendment, the classes of companies specified above will not be required to comply with such provisions which are specifically applicable to “Listed Companies”

Leave a comment

Your email address will not be published. Required fields are marked *

Eshwars | House Of Corporate & IPR Laws,
Chennai | Delhi | Bengaluru | Mumbai | New Jersey

Board: +91 - 44 - 42048335
+91 - 44 - 42048235