PSU firms to continue remaining exempted from minimum public shareholding norms
According to the MPS rule all listed firms have to ensure that non-promoters (public) hold at least 25 percent of their equity shares.
Public sector undertaking (PSU) firms will continue to remain exempted from the minimum public shareholder (MPS) norm, a government notification stated.
According to the MPS rule all listed firms have to ensure that non-promoters (public) hold at least 25 percent of their equity shares.
The MPS rule exemptions would be in place for a 'specified period' even if a change in ownership or control occurs after the exemption is granted, the notification added.
The Securities and Exchange Board of India (SEBI) has has been giving the PSU companies exemptions from the MPS norm for years now.
However, extending the exemption for state-run firms in case they privatise, may persuade investors to purchase stake in government firms.
Last month, the market regulator had said it would relax the listing obligations in cases where the Centre sells majority of its stake to a private buyer.
On another note, last week it was reported that the SEBI is planning to introduce a regulatory framework for index providers, domestic as well as international, to improve transparence and accountability in the administration and governance of the financial benchmarks.
The capital markets regulator has recommended that the index providers providing indices for usage in India would need to register with Sebi for acquiring authorisation and must have a minimum net worth of Rs 25 crore in the consultation paper issued last week.
With inputs from Reuters
First Published: Jan 3, 2023 3:24 PM IST
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