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The Government has exempted public sector enterprises (PSEs), including banks, from meeting minimum public shareholding (MPS) for two years. A listed company is mandated to maintain minimum public shareholding of 25 per cent.
“Yes, those that have not been able to reach MPS so far, including PSBs,” a senior government official told businessLine when asked about the exemption. Now, Securities and Exchange Board of India (SEBI) will come out with a detailed notification. Further he added that LIC already has a separate dispensation for 10 years.
Last year the Finance Ministry had said that a listed public sector undertaking will continue to be exempt from MPS norm for a ‘specified period’, even after change of control. The Ministry had notified changes in Securities Contracts (Regulation) Rules, 1957, or SCRA dated January 2, 2023. According to the amendments, the Central Government may exempt a PSU from various provisions of rule 19A in public interest. These provisions prescribe achieving and maintaining public shareholding for a listed company.
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