New Delhi: Shalimar Paints Ltd on Tuesday said its board has approved requests from certain members of the promoter group to be reclassified as public shareholders, after determining that they meet the conditions prescribed under Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
In a regulatory filing, the company said the requests were received from eight individuals belonging to the promoter group, most of whom hold either nil or negligible shareholding in the company. Collectively, the concerned shareholders hold well below the threshold limits prescribed under the regulations and do not exercise any control over the company’s affairs.
The board noted that the applicants do not hold more than 10% of the total voting rights, have no special rights or shareholder agreements, are not represented on the board, and do not act as key managerial personnel of the company. It also recorded that none of the applicants has been declared a wilful defaulter or a fugitive economic offender.
Shalimar Paints further said that shareholder approval is not required for the reclassification, as the promoter group members seeking the change, along with persons related to them, together hold less than 1% of the company’s total voting rights, in line with SEBI norms.
The reclassification will be subject to receipt of necessary approvals or no-objection certificates from regulatory authorities, including SEBI and the stock exchanges. The company said it is in the process of making the required applications and submissions in this regard.
Such reclassifications are typically aimed at aligning the promoter structure with the current level of ownership and involvement, and are often viewed as a step towards greater transparency and a cleaner shareholding profile.