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SEBI Revises Minimum Public Shareholding Requirements |
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Tuesday, 30 August , 2005, 10:08 |
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| Vide Press Release 108/2005 dated 26th
August 2005, SEBI has revised the minimum public shareholding requirements
for continuous listing. Presently listed companies are required to maintain
their public shareholding at a level that was required at the time of
initial listing. The minimum public shareholding requirement, therefore,
varied in accordance with the provisions applicable at the time of initial
listing of the company. In a meeting of the Securities and Exchange Board of
India, it has been decided to revise the above provisions related to minimum
public shareholding with av view to ultimately reach a single level of
minimum public shareholding requirement for listed companies, in course of
time.
1. All listed companies will be required to maintain atleast 25% shareholding with public for the purpose of continuous listing. 2. This will not, however, be applicable to companies which are permitted to make an Initial Public offer (IPO) of atleast 10% to public in terms of Rule 19(2)(b) of Securities Contracts (Regulation) Rules, 1957 (SCRR). Such companies will be required to maintain atleast 10% public shareholding for the purpose of continuous listing. 3. The aforesaid minimum public shareholding requirement will not be applicable to Government companies, infrastructure companies and companies registered with Board for Industrial Financial Restructuring (BIFR). 4. Listed companies, which are not presently complying with the minimum public holding requirement as mentioned above, will be given a period of two years, for compliance, from the date of issuance of circular in this regard. 5. Listed companies which may in future fall short of the requisite minimum level as mentioned above on account of reasons like Corporate Debt Restructuring (CDR) packages etc. will be given a period of one year , for compliance, from the date of non - compliance. |
Global full service Law Firm based at Delhi and has presence in all major city
of India. Law Firm offers wide range of legal services for Trade Mark, Patent,
banking law, real estate law, corporate laws, business law, litigation, India
law, trade mark, financial risk management, commercial debt collection in India,
credit reports, marketing consultancy, attorney in India.