Sebi plans further rise in public float

Threshold for minimum public shareholding could be raised to 30% or higher, from the existing 25%

The Securities and Exchange Board of India is mulling another increase in minimum public shareholding (MPS) requirements from the current 25 per cent to 30 per cent, or even 35 per cent, said three people in the know.

The discussions at the market regulator’s end are, however, at a nascent stage, clarified one of them. 

India has traditionally been a promoter-driven market and increasing the threshold will ensure wider ownership through institutional investors, more market depth and better corporate governance standards. 

“A wider ownership will improve liquidity and reduce the scope for price manipulation, besides bettering corporate governance standards,” said