Date:14/04/2006 URL: http://www.thehindubusinessline.com/2006/04/14/stories/2006041403170100.htm

Back 25 pc public holding for listing mandatory: SEBI

Our Bureau

New rule to come into effect from May 1

Exemptions
New rules will not be applicable to government-owned and infrastructure companies.
Companies which have issued less than 25 per cent but have 10 per cent public holding and those companies with a market capitalisation of over Rs 1,000 crore or two crore of issued shares have also been exempt.

Mumbai , April 13

The mandatory requirement of minimum 25 per cent public shareholding for continuous listing of companies will come into effect from May 1.

However, the new rules will not be applicable to government-owned and infrastructure companies, SEBI said in a circular issued on Thursday.

Companies which have issued less than 25 per cent but have 10 per cent public holding and those companies with a market capitalisation of over Rs 1,000 crore or two crore of issued shares have also been exempt from the provision. These companies will have to ensure that a minimum of 10 per cent is held by the public, said the circular.

Revised reporting format

SEBI also revised the reporting format on public shareholding by companies to the stock exchanges through amendments in the listing agreement. The new rules are meant "to ensure availability of floating stock on a continuous basis and to bring about greater transparency in respect of disclosure of shareholding pattern of companies," SEBI said.

The new norms call for companies to provide details on ownership, which will have to be categorised under three classifications: shares held by promoter and promoter group; shares held by public, and shares held by custodians and against which depositary receipts have been issued.

The companies will also need to provide details such as number of shareholders, number and percentage of shares held, number of shares held in dematerialised.