All Rights Reserved Finance News 2020.
Listed firms have till 2023 to comply with minimum shareholding guidelines: FinMin
Listed public sector enterprises now have one other 12 months to comply with minimum shareholding interval (MPS) guidelines, which require them to have at the least 25% public shareholding, in accordance to a authorities notification.
The sooner rule had given these corporations two years to comply, from 2018, the deadline for which fell in August this 12 months.
Extending the time interval for compliance, the finance ministry on Friday amended the Securities Contracts (Regulation) Guidelines to enable public sector listed corporations three years to attain the minimum public shareholding, successfully giving them an extra 12 months.
As soon as an entity is listed, its promoters and promoter teams are required to deliver down their shareholding down to 75% as stipulated by the norm. Further leisure was offered to public sector enterprises.
On Could 14, the Securities and Alternate Board of India relaxed the applicability of motion on non-compliant entities due to Covid-19.
“After bearing in mind requests obtained from listed entities and business our bodies in addition to contemplating the prevailing enterprise and market situations, it has been determined to grant leisure from the applicability of the October 10, 2017, round,” the Could 14 round mentioned.
“Accordingly, the stipulations of the aforesaid October 10, 2017, SEBI round are relaxed for listed entities for whom the deadline to comply with MPS necessities falls between the interval from March 1, 2020, to August 31, 2020.”
In accordance to the 2017 round, if discovered non-compliant, exchanges may impose a fantastic of up to Rs 10,000 on corporations for every day of non-compliance other than intimating depositories to freeze your complete shareholding of the promoter and promoter group.