Regulation 31 of the SEBI (Listing Obligations and Disclosure Requirements)

Regulation 31 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, pertains to the submission of shareholding patterns by listed companies. Here’s an overview:

Key Points of Regulation 31:

1. Submission Requirement: Listed entities must disclose their shareholding pattern on a quarterly basis. This ensures transparency in ownership structures.
2. Format: The shareholding pattern must be submitted in a specified format, detailing the number of shares held by various categories of shareholders, such as promoters, public shareholders, and institutional investors.
3. Timeliness: Companies are required to submit the shareholding pattern within 21 days from the end of each quarter.
4. Categories: The regulation outlines different categories for reporting, including:
   • Promoters and promoter group
   • Public shareholding (non-institutional and institutional)
   • Foreign institutional investors (FIIs) and foreign portfolio investors (FPIs)
5. Compliance and Penalties: Non-compliance with these regulations can lead to penalties, including fines or other actions by the SEBI.
6. Annual Disclosure: In addition to quarterly submissions, listed entities also have to disclose their shareholding pattern in the annual report.
7. Purpose: This regulation aims to enhance transparency in the capital markets, allowing investors to make informed decisions based on ownership structures.

Importance:

• Investor Awareness: Regular updates on shareholding patterns help investors gauge the stability and control within the company.
• Market Integrity: Ensures that changes in significant shareholdings are promptly reported, which is crucial for maintaining market integrity.

Exemption:

Companies listed on the SME (Small and Medium Enterprises) platform are exempt from the requirement to file a quarterly shareholding pattern under Regulation 31 of the SEBI (LODR) Regulations.