Relaxation from the applicability of SEBI Circular dated October 10, 2017 on non-compliance with the Minimum Public Shareholding (MPS) requirements

Last updated: 15 May 2020

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The Securities and Exchange Board of India (SEBI) has issued a circular providing a relaxation on its October 10, 2017 circular concerning Minimum Public Shareholding (MPS) requirements. This relaxation applies to listed entities whose deadline to comply with MPS falls between March 1, 2020, and August 31, 2020. Stock exchanges are instructed not to take any penal actions against these entities for non-compliance during this period, and any actions already initiated since March 1, 2020, should be withdrawn.

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/CFD/CMD1/CIR/P/2020/81

May 14, 2020

All listed entities that have listed their specified securities

All Recognized Stock Exchanges

All Depositories

Madam / Sir,

Sub: Relaxation from the applicability of SEBI Circular dated October 10, 2017 on non-compliance with the Minimum Public Shareholding (MPS) requirements

1. SEBI circular No. CFD/CMD/CIR/P/2017/115 dated October 10, 2017 lays down the procedure to be followed by the recognized stock exchanges / depositories with respect to MPS non-compliant listed entities, their promoters and directors, including levy of fines, freeze of promoter holding etc.

2. After taking into consideration requests received from listed entities and industry bodies as well as considering the prevailing business and market conditions, it has been decided to grant relaxation from the applicability of the October 10, 2017 circular. Accordingly, the stipulations of the aforesaid October 10, 2017 SEBI circular are relaxed for listed entities for whom the deadline to comply with MPS requirements falls between the period from March 1, 2020 to August 31, 2020. Recognized Stock Exchanges are advised not to take any penal action as envisaged in the October 10, 2017 circular against such entities in case of non-compliance during the said period. Penal actions, if any, initiated by Stock Exchanges from March 1, 2020 till date for non-compliance of MPS requirements by such listed entities may be withdrawn.

3. This Circular shall come into force with immediate effect. The Stock Exchanges are advised to bring the provisions of this circular to the notice of all listed entities that have issued specified securities and also disseminate on their websites.

4. The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with regulations 97, 98, 101 and 102 of the LODR.

5. This Circular is available at sebi.gov.in under the link “Legal → Circulars”.

Yours faithfully,

Pradeep Ramakrishnan
General Manager
Corporation Finance Department
Compliance and Monitoring Division-1
+91-22-26449246
pradeepr@sebi.gov.in

FAQ :

The circular grants a relaxation from the applicability of the SEBI circular dated October 10, 2017, concerning non-compliance with Minimum Public Shareholding (MPS) requirements.

Listed entities for whom the deadline to comply with MPS requirements falls between March 1, 2020, and August 31, 2020, are eligible for this relaxation.

The October 10, 2017 circular outlines procedures for stock exchanges and depositories regarding MPS non-compliant entities, including potential fines and freezing of promoter holding.

Recognised Stock Exchanges are advised not to take any penal action as envisaged in the October 10, 2017 circular against eligible entities for non-compliance during the specified period.

Any penal actions initiated by Stock Exchanges from March 1, 2020, till the date of this circular for non-compliance of MPS requirements by such listed entities may be withdrawn.

This circular comes into force with immediate effect.