Reliance Industries to Sign Revised Listing Agreement with BSE

The largest private conglomerate, Reliance Industries signed the revised listing agreement with the Bombay Stock Exchange (BSE), as per the recent Listing Regulation, issued by the Securities and Exchange Board of India (SEBI). The Mukesh Ambani-led company is the first corporate house to do this.

New Listing Agreement

Previously, the listing agreement used to be bilateral. It wassigned between the stock exchange and the company, while SEBI had no control overit.

In September, this year, SEBI issued these new regulations and set the deadline of six months. A statement mentioned that Reliance Industries is the first listed company to conform to the SEBI rules.

SEBI issued the Listing Regulations from 2nd September, 2015, which would be effective from 1stDecember, 2015. As per the regulations, SEBI has asked all listed companies to compulsorily enforce a new and simplified Listing Agreement. The companies have to sign the agreement with the stock exchange, where they are to be listedbefore 2nd March, 2016. The companies will have to sign the agreement within the timelines specified by SEBI.

BSE, in a statement, said that it is pleased that the process of revised listing agreement as per SEBI’s rules was started at BSE. “It is a matter of pride for both, that one of the top companies of the Indian corporate sector has become the first company to sign the new listing agreement with Asia’s oldest and the world’s fastest stock exchange BSE”.

BSE is hopeful that all the listed companies will ensure that they sign the new listing agreement within the specified deadlines. The new SEBI rules incorporate corporate governance principles and offer broad principles for timely disclosures by listed companies. SEBI has directed that a small version of the listing agreement be prescribed for the company to sign.

Plans of Reliance Brands

Reliance Brands, a part of Reliance Industries’ retail arm, Reliance Retail, is planning to enter the beauty and kids’ wear sectors. It will boost its online presence by rolling out web stores under its name. The e-commerce portal will include many popular and international brands.

CEO of Reliance Brands, Darshan Mehta, stated that kids’ clothing forms a large part of consumer spending. He revealed that Reliance Brands is looking for partners that have good knowledge of the Indian consumer market. The company will be positionedin the mid-market segment.

Mehta said this at the launch of Hamleys’ first store in Kolkata. One of the largest toy sellers, Hamleys is the biggest business partner of Reliance Brands. Hamleys operates 14 stores in 8 cities of India.

At present, Reliance Brands is associated with 18 international mid-to-luxury brands. Out of these, 7 brands are sold online on e-commerce websites like Amazon, Myntra, and Flipkart. Mehta informed that Reliance Brands is planning to set up a dedicated online presence for all of the brands. Currently, 5% of the total revenue of Reliance Brands is generated from the online business.

Summary

Reliance Industries Limited (RIL) is the first corporate house to sign the revised listing agreement with BSE, as mandated by SEBI.

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