MANDATORY LISTING OF SHARES HAVING SUPERIOR VOTING RIGHTS: A STEP FORWARD?

Aastha Agarwalla, Law Student, Campus Law Centre, Faculty of Law, University of Delhi

Prefatory

The Ministry of Finance, through a notification dated 19th March 2020, (hereinafter, “Amendment”) introduced a significant development in the legal framework of Differential Voting Rights (DVR), especially in shares having Superior Voting Rights (SR), by amending the Securities Contracts (Regulation) Rules, 1957 (hereinafter, “SCRA Rules”).The Amendment provides that in case a company seeks to list its ordinary equity shares for offering to the public, then it shall be mandatorily required to list its shares having SR on the same recognized stock exchange.

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