Listed Entities Get 3 Years to Meet Criteria of Minimum 25% Public Shareholding

 

 

Once a company is listed, its promoters are required to ship down their shareholding proper right down to 75 per cent all through the stipulated minimal shareholding interval so as to fulfill minimal public float of 25 per cent.

 

The authorities has notified modifications throughout the Securities Contracts (Regulation) Rules, 1957, providing additional time to listed entities to meet requirements of minimal public shareholding of 25 per cent.

“In the Securities Contracts (Regulation) Rules, 1957, in rule 19A, in sub-rule (1), in the proviso, for the words ‘two years’ the words ‘three years’ shall be substituted,” said a authorities notification dated July 31.

Advertisement

 

The modifications have come into drive from the date of their publication throughout the official gazette, it said. Once a company is listed, its promoters are required to ship down their shareholding proper right down to 75 per cent all through the stipulated minimal shareholding interval so as to fulfill minimal public float of 25 per cent.

The latest notification is the second primary discount corporations have gotten on this regard on account of the COVID-19 pandemic. On May 14, the Securities and Exchange Board of India (SEBI) relaxed the applicability of movement on non-compliant entities.