Central Govt, SEBI Approve Divestment of NLC Shares to TN PSUs Monday July 15,2013

The Securities and Exchange Board of India (SEBI) and the Central Govt on Monday July 15,2013 approved the Tamil Nadu Govt's request to divest 3.56% shares of NLC to the TN State PSU's to meet the regulatory norm of 10% public holding.                                                                                                                                                                     This follows discussions in Mumbai among officials from Tamil Nadu, led by K. Shanmugam, Principal Secretary (Finance), and those of the Centre and Securities and Exchange Board of India (SEBI).                                                                                                                                                                      TN CM J Jayalalithaa  said the shares, which would cost Rs 500 crore, would be purchased by  -    TN Industrial Development Corporation(TIDCO)  - 25% Shares of NLC TN Industrial Investment Corporation (TIIC) - 45& Shares of NLC  State Industries Promotion Corporation of Tamil Nadu (SIPCOT)  - 10% Shares of NLCTN Urban Finance and Infrastructure Development Corporation (TUFIDCO)-10 % Shares of NLCTN Power Finance & Infrastructure Development Corporation Ltd (Powerfin)-10 % Shares of NLC                                                                                                                                                                                                                                                                                                                                                  Note       The Minimum Public Shareholding Norm(MPSN) for private firms is 25 % and for PSUs it is 10 %                                    As Per  the Securities Contract (Regulation) Rules,1957 MPSN need to be complied with by Aug 8,2013                                                                                                                                                           the minimum public shareholding norm for private firms is 25 per cent, for PSUs it is 10 per  TN CM J Jayalalithaa had, in one of her letters on the issue to Prime Minister Manmohan Singh, pointed out that since public holding in NLC was already 6.44 %, it would be sufficient if 3.56 % was divested