The government will allow companies, having more than 75 per cent promoters holding, to increase the public stake in a phased manner and not at one go.
"It (increasing public holding in the companies where promoters' stake is over 75 per cent) would be in a phased manner," an official said.
The draft in this respect will be released soon for public comments and the framework is expected to be out by December-end, he added.
The government has to amend the Securities Contracts (Regulation) Rules (SCRR) for the purpose, he added.
And once the framework is out, a slew of follow on public offers (FPOs) is expected to hit the market as about 180 companies have less than 25 per cent public holding.
Finance Minister Pranab Mukherjee had earlier, in his Budget speech for 2009-10, said that the average public float in Indian listed companies is less than 15 per cent.
"This requirement should be uniformly applied to the private sector as well as listed public sector companies. I propose to raise, in a phased manner, the threshold for non-promoter public shareholding for all listed companies," Mukherjee had said.
Among the leading PSUs where promoter's or government's holding is well above 75 per cent are MMTC, NMDC, Hindustan Copper, Power Grid, NTPC, SAIL, Shipping Corporation, Neyveli Lignite.
In the same league are some of the private companies like Wipro, DLF, Reliance Power, Mundra Port, TCS and IL&FS.
The rules provide for the requirements which have to be complied with by public companies for the purpose of getting their securities listed on any stock exchange.
One requirement seeks to ensure the availability of a minimum portion/number of shares (floating stock) of the listed securities with the public so that there is a reasonable depth in the market and the prices of the securities are not susceptible to manipulation.
The SCRR seeks to achieve this by prescribing a minimum part of the issue to be offered to public by the company seeking listing on a recognised stock exchange.
