"If it (PSU) is listed company, then whatever are the guidelines issued from time to time by the listing authority, which is Sebi, they will have to follow," he told the Rajya Sabha.
Currently PSUs need to maintain public shareholding of 10 per cent.
"...If they (Sebi) say 25 per cent (minimum public holding) that will be a different set of guideline. If any PSU wants to avoid that it has to get itself delisted... If a PSU decides to get listed, then it is bound by the listing law," Jaitley said.
The decision, aimed at ensuring uniformity among listed entities irrespective of their promoters, would also help the government raise close to Rs 60,000 crore from the sale of shares in around 36 listed PSUs where the public shareholding is less than 25 per cent.
Under current norms, government undertakings should have at least 10 per cent public shareholding whereas for non-PSU firms the minimum level is 25 per cent.