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SEBI board announces measures to boost primary market

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Capital Market
Last Updated : Jun 20 2014 | 12:00 AM IST

Caps 25% minimum public shareholding for PSUs, provides 10% reservation and discount for retail investors under offer for sale of shares

The board of Securities and Exchange Board of India (SEBI), the capital market regulator, has decided to cap the minimum dilution of stake to public for public entities at 25% against 10% currently. PSUs will have to meet 25% minimum public shareholding in three years.

SEBI has extended the popular offer for sale (OFS) mechanism for share sales to top 200 companies from existing top 100 companies. SEBI has also stipulated 10% reservations for retail investors in OFS, while allowed differential pricing and discounts for retail investors bidding for less than Rs 2 lakh.

Along with promoters, now non-promoter entities holding more than 10% stake will be allowed to divest through the OFS route.

SEBI has also allowed India Inc to buy shares from the secondary market, to reward employees with stock options.

Regarding research analysts, SEBI has made registration to make stock recommendations.

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First Published: Jun 19 2014 | 3:41 PM IST

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