Sebi eases minimum public shareholding compliance norms for listed entities

All listed companies have to maintain a minimum 25% public shareholding.

TNN
At present, stock exchanges and depositories are mandated to take action against listed companies that don’t meet the MPS norms.
Mumbai: Sebi has eased the 25% minimum public shareholding norms for listed companies in the wake of the Covid-19 outbreak. The regulator relaxed the requirement for companies that were to have complied with the rule between March 1 and August 31.

At present, stock exchanges and depositories are mandated to take action against listed companies that don’t meet the minimum public shareholding (MPS) norms. They are also required to initiate action against the promoters and directors of such companies, including the levy of fines and a freeze on the promoter holding.

All listed companies have to maintain a minimum 25% public shareholding.


“After taking into consideration requests received from listed entities and industry bodies as well as considering the prevailing business and market conditions, it has been decided to grant relaxation... for listed entities for whom the deadline to comply with MPS requirements falls between the period from March 1, 2020, to August 31, 2020,” the Securties and Exchange Board of India said in a circular on Thursday.

The regulator asked the stock exchanges not to take any penal action against companies that are non- compliant during the period. Any penal action initiated against companies since March 1 for non-compliance should be withdrawn. The regulator said the circular would come into effect immediately.
ADVERTISEMENT
READ MORE

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+