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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Circular from Bombay Stock Exchange (BSE) Regarding Corporate Group Repository

13-Oct-2023 | Notice No. 20231013-43

BSE has released a circular in reference to SEBI circular no. SEBI/ HO/ AFD/ AFD-PoD-2/ CIR/ P/ 2023/148 dated August 24, 2023. This SEBI circular outlines the creation of a repository containing names of listed companies within each Indian corporate group.

The circular details several criteria for determining group companies:

Companies with subsidiaries/holding companies (possessing more than 50% common ownership) and associates (with 20-50% common ownership) are considered part of a group.

Consideration of disclosures found in annual reports.

Examination of disclosures on company websites.

Identification of companies disclosed as group companies by listed companies in their annual reports, based on related party transactions or materiality considerations by the board.

Joint ventures between an Indian group and a foreign group are classified as part of the Indian group.

When a promoter or promoter group of a company is a major shareholder of another company, both are considered part of the same group.

Companies that do not belong to any corporate group in the listed space will have their names suffixed with the word group.

In cases where an entity is equally owned by two groups, the company which exercises management control over the entity will be considered for classification.

Currently, the list of Indian corporate groups and their constituents is under finalization, with the grouping exercise completed for 2239 listed companies.

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