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

Determination of criteria / parameters for identifying the corporate group

30-Nov-2023 | BSE Circular No.20231130-27

The Bombay Stock Exchange has issued a notification on 30th November, 2023 regarding Corporate Grouping of Listed Companies in reference to the SEBI circular- SEBI/ HO/ AFD/ AFD - PoD - 2/ CIR/ P/ 2023/ 148 dated August 24, 2023, titled ''Mandating additional disclosures by Foreign Portfolio Investors (FPIs) that fulfil certain objective criteria.''

By virtue of this notification it is being informed that Exchange is maintaining a repository containing names of companies forming a part of each Indian corporate group in reference to which criteria / parameters are determined to be considered by the listed companies / proposed to be listed companies for identifying the corporate group.

Key points of the criteria are as mentioned below:-

1. A company and all its subsidiary companies will have the same ownership group. A company is said to be a subsidiary of another company when majority shares (50% or more) are held by the other company in the said company.

2. All associate companies of a company also belong to the same group. A company is said to be an associate of another company when shares in
the range of 20 to 50 per cent are held by the other company in the said company.

3. If the annual report of the company specifically attributes itself to a group.

4. If the annual report of a company does not specify its affiliation with an ownership group but the website of the company does, then ownership is
determined using the website as the primary source. etc.,

For detailed criteria please refer the notice issued by BSE.

In case of any change in its corporate group pursuant to any event such as Corporate Restructuring, Takeover, Merger, Demerger, Acquisition, Delisting
etc., the companies have to intimate the Exchange within Two Working Days of the Effective Date of the change on email id lalit.phatak@bseindia.com


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