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Request for suggestions on SEBI report on issuance of shares with Differential Voting Rights (DVRs)

March 25, 2019

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Securities Exchange Board of India (SEBI) has released a report on “Issuance of shares with Differential Voting Rights (DVRs)” for public consultation (attached).

The Consultation Paper presents an analysis of evolution of DVRs more broadly and a consideration of advantages and disadvantages of the structure both for issuers as well as investors. It also scans the legal regime in India governing DVRs, including the Companies Act and various SEBI regulations, which is followed by an comparative overview of the legal regimes in jurisdictions such as the US, Canada, Hong Kong and Singapore. The Report proposes to structure the regulation of DVR issuance under following two broad heads:

  1. Issuance by companies whose equity shares are already listed on stock exchanges;
  2. Issuance by companies whose equity shares are proposed to be listed.

The last date to submit comments to SEBI is April 20, 2019.

Nasscom is formulating its submission on the consultation paper, and we encourage members to send us their inputs by April 10, 2019.

For further information, contact Tejasvi Gupta at tejasvi@nasscom.in


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15478-sebi-consultation-paper-on-dvrs.pdf

Tejasvi

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