Centre open to changes in 25% public stake norm

Jun 10, 2010 |

New Delhi

Within days of making it mandatory for listed companies to have at least 25 per cent public holding, the government on Wednesday said it was open to changes depending on the feedback it was getting.

Likewise, market regulator Securities and Exchange Board of India (Sebi), which was reported to be apprehensive about the impact of the such a decision on the stock market, said it was also getting the feedback on the issue.
“The ministry of finance and the department of disinvestment are receiving different points of view from public sector enterprises and other stakeholders.
So, if there is any need for modification or correction or amendment, that will be done,” the finance secretary, Mr Ashok Chawla, said.
The concept of 25 per cent public holding was first floated by the finance ministry in 2008, but changes in the concerned regulations were announced only last week. The government had announced that all the listed companies should increase the public holding to 25 per cent in a phased manner and equity dilution of five per cent a year was made a must for reaching the threshold limit. — PTI

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