With a view to further facilitate listed entities to comply with the
minimum public shareholding requirements, markets regulator SEBI has
allowed sale of shares held by promoters/promoter group of up to 2% of
the total paid-up equity capital of the company in the open market.
The sale is, however, can be only up to five times’ average monthly trading volumes of the shares of the listed entity, the regulator said in its latest circular.
Every listed firm has to maintain a minimum public shareholding of at least 25% as per SEBI norms.
Listed public sector companies have been given time till August 21, 2018 to meet the requirements.
Currently, listed companies can use several methods to comply with the norms.
This includes issuance of shares to the public through a prospectus, offer for sale to the public, sale of shares held by promoters through secondary market institutional placement programme, rights issue and bonus issue to public shareholders
SEBIsaid that the listed company should inform the stock exchanges on the intention of the promoter/promoter group to sell, the purpose of sale, details of promoters/promoter group, who propose to divest their shareholding, total number of shares and percentage of shareholding proposed to be divested and the timeframe within which the entire divestment process will be completed at least one trading day prior to the proposed sale.
The sale is, however, can be only up to five times’ average monthly trading volumes of the shares of the listed entity, the regulator said in its latest circular.
Every listed firm has to maintain a minimum public shareholding of at least 25% as per SEBI norms.
Listed public sector companies have been given time till August 21, 2018 to meet the requirements.
Currently, listed companies can use several methods to comply with the norms.
This includes issuance of shares to the public through a prospectus, offer for sale to the public, sale of shares held by promoters through secondary market institutional placement programme, rights issue and bonus issue to public shareholders
SEBIsaid that the listed company should inform the stock exchanges on the intention of the promoter/promoter group to sell, the purpose of sale, details of promoters/promoter group, who propose to divest their shareholding, total number of shares and percentage of shareholding proposed to be divested and the timeframe within which the entire divestment process will be completed at least one trading day prior to the proposed sale.
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