The Securities and Exchange Board of India’s (Sebi’s) proposal to entail higher free-float for companies relisting after insolvency proceedings may run into implementation hurdles. Several legal experts plan to highlight the challenges in implementing all the three options recommended by Sebi in a discussion paper floated by it last week.
In the discussion paper —Recalibration of threshold for Minimum Public Shareholding (MPS) norms, enhanced disclosures in Corporate Insolvency Resolution Process (CIRP) cases — the market regulator has proposed that companies should achieve at least 10 per cent public shareholding within six months of re-listing. Currently, those relisting after CIRP are given