(1)

The SR equity shares shall be treated at par with the ordinary equity shares in every respect, including dividends, except in the case of voting on resolutions.

(2)

The total voting rights of SR shareholders (including ordinary shares) in the issuer upon listing, pursuant to an initial public offer, shall not at any point of time exceed seventy four per cent.

(3)

The SR equity shares shall be treated as ordinary equity shares in terms of voting rights (i.e. one SR share shall only have one vote) in the following circumstances -

i. appointment or removal of independent directors and/or auditor;

ii. where a promoter is willingly transferring control to another entity;

iii. related party transactions in terms of these regulations involving an SR shareholder;

iv. voluntary winding up of the listed entity;

v. changes to the Articles of Association or Memorandum of Association of the listed entity, except any change affecting the SR equity share;

vi. initiation of a voluntary resolution process under the Insolvency Code;

vii. utilization of funds for purposes other than business;

viii. substantial value transaction based on materiality threshold as specified under these regulations;

ix. passing of special resolution in respect of delisting or buy-back of shares; and

x. other circumstances or subject matter as may be specified by the Board, from time to time.

(4)

The SR equity shares shall be converted into equity shares having voting rights same as that of ordinary shares on the fifth anniversary of listing of ordinary shares of the listed entity:

Provided that the SR equity shares may be valid for upto an additional five years, after a resolution to that effect has been passed, where the SR shareholders have not been permitted to vote:

Provided further that the SR shareholders may convert their SR equity shares into ordinary equity shares at any time prior to the period as specified in this sub-regulation.

(5)

The SR equity shares shall be compulsorily converted into equity shares having voting rights same as that of ordinary shares on the occurrence of any of the following events -

i. demise of the promoter(s) or founder holding such shares;

ii. an SR shareholder resigns from the executive position in the listed entity;

iii. merger or acquisition of the listed entity having SR shareholder/s, where the control would no longer remain with the SR shareholder/s;

iv. the SR equity shares are sold by an SR shareholder who continues to hold such shares after the lock-in period but prior to the lapse of validity of such SR equity shares.]