 "190 listed firms yet to meet minimum public shareholding norms")
Sebi has also initiated consultations with non-compliant companies to resolve all outstanding issues for ensuring adherence to this requirement, which entails achieving a minimum 10 % public holding in PSUs by August 31 and at least 25 % in non-PSUs by June 30, 2013.
Providing compliance status of listed firms to the Minimum Public Shareholding (MPS) requirement, Corporate Affairs Minister Sachin Pilot today informed Lok Sabha in a written reply that shares worth about Rs 29,650 crore, as per valuation on December 31, 2012, need to be divested to meet these norms.
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"In order to bring out a plan of action and to resolve all outstanding issues for ensuring adherence to MPS requirement for non-PSU companies, Sebi (Securities and Exchange Board of India) has initiated consultation process with the representatives of companies that are not meeting the MPS requirement," Pilot said.
According to Sebi, companies could meet the norms by many routes including Offer for Sale, Institutional Placement Programme, bonus and rights issues to public shareholders.In a circular issued in August 2012, the market regulator had said that companies seeking to achieve MPS by ways, other than prescribed, could approach it.
"It is also mentioned in the circular that listed entities desirous of seeking any relaxation from the available methods may approach Sebi with appropriate details," Pilot said.