Government Amends Securities Contracts Rules to Revise Minimum Public Shareholding Norms



Quick Summary
The Ministry of Finance has updated the Securities Contracts (Regulation) Rules, introducing a new graded framework for minimum public shareholding and public offers. These changes aim to offer more flexibility to large companies going public while ensuring gradual adherence to public shareholding norms. The updated rules, effective immediately, also set specific timelines for companies to achieve the standard 25% public shareholding, with provisions for different company sizes and special relaxations for listings in International Financial Service Centres.

The Ministry of Finance has notified amendments to the Securities Contracts (Regulation) Rules, 1957, revising the framework for minimum public shareholding and public offer requirements for companies seeking listing on stock exchanges. The changes were introduced through the Securities Contracts (Regulation) Amendment Rules, 2026, issued under powers granted by the Securities Contracts (Regulation) Act, 1956. The amended rules were published in the Gazette of India on March 13, 2026 and came i
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FAQ :

The Ministry of Finance has amended the Securities Contracts (Regulation) Rules, 1957, to revise the minimum public shareholding and public offer requirements for companies seeking to list on stock exchanges.

The new rules introduce a graded structure based on a company's post-issue capital. For instance, companies with capital up to Rs 1,600 crore must offer at least 25% to the public, while larger companies have different percentage or value-based requirements.

Companies generally have three years to reach 25% public shareholding, with large companies potentially receiving up to five years. Those starting below 15% have longer timelines to reach 15% and then 25%.

Yes, the new compliance timelines will also apply to companies that were already listed before the amendments came into effect.

Yes, companies listing in IFSCs can have a special relaxation, allowing them to list with a minimum public shareholding of 10%, regardless of their post-issue capital.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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