Government Extends PSU Public Shareholding Deadline

1 Aug 2024 , 11:51 AM

The government has extended the deadline for listed public sector companies to raise their minimum public shareholding to at least 25% by two years to August 1, 2026.

The Securities and Exchange Board of India’s (SEBI) regulations mandate all listed companies have to increase their minimum public shareholding to at least 25% within three years from the date of listing of the securities.

In a letter, Economic Affairs Department of the finance ministry asked SEBI to take further necessary action to exempt public sector companies from the norm till August 1, 2026.

The government has extended the deadline for meeting the minimum public shareholding by public sector companies a number of times as it has not been able to disinvest in all the companies.

According to BSE data, there are 27 central public sector companies and five public sector banks where public shareholding is less than 25%. These include Life Insurance Corp of India, Hindustan Aeronautics Ltd, Indian Railway Finance Corp Ltd, Bharat Electronics Ltd, IDBI Bank, UCO Bank and Central Bank of India.

There are 67 central public sector companies and 13 public sector banks and their subsidiaries listed on the BSE, according to the exchange.