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these entities for non-compliance during this period, and any actions already initiated since March 1, 2020, should be withdrawn.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 To All listed entities that have listed their specified securities All Recognized Stock Exchanges All Depositories Madam / Sir, Sub: Relaxation from the applicability of SEBI Circul

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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March 1, 2020, till the date of this circular for non-compliance of MPS requirements by such listed entities may be withdrawn.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.