Deadline for PSUs to meet public shareholding norm expires

NEW DELHI: The deadline for listed public sector companies to comply with market regulator Sebi's minimum public shareholding norms ended today.

Most of the public sector companies have complied with the norms. Entities including STC and ITDC had offloaded their shares last week to meet the Sebi norms that require government entities to have at least ten per cent public shareholding.

The last date for listed public sector companies to meet the minimum shareholding expired today.

Earlier this month, the Cabinet Committee on Economic Affairs had approved creation of the Special National Investment Fund to ensure that six sick entities comply with the norms.

The fund was approved for Andrew Yule & Company, Fertilizers & Chemicals (Travancore), Hindustan Photo Films Manufacturing Co, HMT, ITI and Scooters India.

"The number of shares that is required to make the six companies compliant with the minimum public shareholding will be transferred to the Special National Investment Fund out of Government of India shareholding on irrevocable basis without any consideration," the government had said last week.

On August 2, Neyveli Lignite, STC and ITDC had sold shares, which garnered about Rs 395 crore to the exchequer.

In June, Sebi had clamped down on more than 100 private sector companies that failed to comply with the minimum 25 per cent public holding norms.

Sebi had acted against 105 companies that failed to meet the norms within the deadline of June 3, despite repeated reminders and various relaxations provided to the companies to help them meet the requirements.