News

Capital market regulator Securities and Exchange Board of India (SEBI) on Monday issued a consultation paper proposing certain changes to its market participant obligations (MPO) and public shareholding norms. The regulator has invited public comments on the proposals till August 21. It will send the final recommendations to the Finance Ministry after receiving feedback. 

Here are key changes proposed by SEBI in its consultation paper:

SEBI has proposed that companies with market capitalisation in the range of Rs 50,000 crore to Rs 1 lakh crore be mandated to achieve the 25 per cent minimum public shareholding within five years of listing. 

Similarly, companies with market capitalisations above Rs 1 lakh crore are proposed to be required to achieve 15 per cent public shareholding within five years and 25 per cent within 10 years if their public shareholding at the time of listing is less than 15 per cent. 

In case their public shareholding is at least 15 per cent at the time of listing, they can achieve the minimum 25 per cent public shareholding within five years.

It has also proposed to give non-compliant companies more time to meet its guidelines.

However, such companies will have to pay certain fees until the new rules are implemented. 

ALSO READ: SEBI proposes stricter rules for Nifty Bank, other non-benchmark indices—See detail

As per current laws, SEBI manages all listed companies to maintain at least 25 per cent of minimum public shareholding.

Introduced this year itself, SEBI's MPO rules are aimed at enhancing investor protection and market integrity by regulating the conduct and responsibilities of entities participating in the securities market. 

These rules are aimed at ensuring better transparency, fairness and accountability among market participants such as stockbrokers, investment advisers, fund managers, and other intermediaries.

ALSO READ: SEBI extends deadline to implement margin obligation pledge framework by over a month

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.