New Delhi: In a significant beneficial move for investors, the Union Finance Ministry has proposed a minimum public stake of 25 per cent in any company listed on the stock exchanges.
According to an official statement here on Friday, this amendment, proposed along with a slew of other proposals, is based on a review of the Securities Contracts (Regulation) Rules, 1957 (SCRR) for both initial and continuous listing requirements of companies on the stock exchanges. In a discussion paper titled ''Requirement of public holding for listing'', the Ministry has proposed that the Securities and Exchange Board of India (SEBI), as the market regulator, should be entitled to take enforcement action, including delisting of shares, in case the company failed to hike the public equity holding to 25 per cent within three months. On the discrimination against private companies, the paper pointed out that the powers of the stock exchanges to relax any of the conditions of listing with the prior approval of SEBI in respect of a government company is required to be withdrawn.
No comments:
Post a Comment