SEBI deadline ends for minimum 25% public holding

India Infoline News Service | Mumbai |

The Securities Contracts (Regulation) Rules, 1957 were amended in 2010 to provide for minimum and continuous public shareholding requirement in listed companies in private sector at 25%

Market regulator SEBI’s deadline for achieving minimum 25% public shareholding in listed private sector firms ended Monday.

The Securities Contracts (Regulation) Rules, 1957 were amended in 2010 to provide for minimum and continuous public shareholding requirement in listed companies in private sector at 25%.

According to the rules, all listed companies have to comply with the said requirement by June 03, 2013.

This was done with a view that a dispersed shareholding structure is essential for the sustenance of a continuous market for listed securities to provide liquidity to the investors and to discover fair prices.

There were two hundred such companies which were non compliant with the above requirement as on June 30, 2012. For some of the companies the due date of compliance falls beyond June 3, 2013.
 

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