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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 (R
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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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