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Guest (Guest)     11 July 2009

PROPOSAL ON 25% PUBLIC HOLDING IN LISTED FIRMS ON TABLE: SEB

 The Securities and Exchange Board of India (Sebi) said it was still discussing a proposal on making it mandatory for all listed companies to have at least 25 per cent of their share holding with public investors. “We are deliberating on it,” Sebi Chairman CB Bhave said. In his Budget speech Finance Minister Pranab Mukherjee had said that equity holding of non-promoter or public shareholders in all listed companies in both public and private sector should be raised. Bhave along with other members of the Sebi board had a meeting with the finance minister today. Currently, there are a number of public sector companies with public holding below 25 per cent. “I think PSU listing is a good thing because it does impose its own discipline,” added Bhave. PSUs will also be required to come out with quarterly reports as part of the listing requirement. After the meeting, the finance minister told reporters, “The basic objective of Sebi is to protect investors during a financial crisis and handle the situation accordingly. We internally discussed some of the problems Sebi has and we will address them and take appropriate steps. ”The finance ministry favours increasing non-promoter shareholding in a phased manner as the market may not be able to absorb sudden surge in share sales by listed firms. 



 1 Replies

Abhishek (Lawyer)     24 July 2009

The finance ministery also want to change the defination of "public shareholding" they want retail shareholding as public shareholding as now the defination of public shareholding is total holdings less promoter and promoter group holding. Actually QIBs and others are not actually trading in the shares of company which they holds on regular basis. so for better volume of trade retail holding should be increased but practically it is very difficult. even 25% public holding seems difficult. soon we will see the verdict of the finance ministery.


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