SEBI Relaxation from Minimum Public Shareholding requirements
During the continuance of Covid-19 pandemic, the regulatory authorities are providing relaxation in the various compliances under different laws to ease the corporates. On the same lines, Securities and Exchange Board of India (SEBI) has issued a circular dated May 14, 2020 1 vide which it has granted relaxation to the effect that no penal action be taken by Stock Exchange against the listed entities who could not meet the requirements of Minimum Public Shareholding (MPS) during the period March 1, 2020 to August 31, 2020.
Regulation 38 of the Listing regulations requires a listed entity to comply with the minimum public shareholding requirements as specified in rule 19(2) and rule 19A of the Securities Contracts (Regulation) Rules, 1957. However, this provision does not apply to entities listed on institutional trading platform without making a public issue.
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