Listed cos must comply with Sebi's public-holding norms: FM

Finance minister P Chidambaram on Tuesday said listed companies must comply with the Securities and Exchange Board of India's (Sebi) minimum public shareholding requirement as enough time has been given to them by the market regulator.

"Companies have been given enough time...(they) should make every effort to comply with Sebi's requirement", he told reporters after a meeting of the group of ministers (GoM) related with reforms in the central public sector enterprises.

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As per the norms stipulated by Sebi, privately promoted companies are expected to have public shareholding at 25 percent by June 2013, while the same for the state-run listed companies has been relaxed to 10 percent, which is to be met by August 2013.

Chidambaram said the deadline for meeting the minimum public holding norms have been extended several times by Sebi and any further extension "is something that Sebi has to decide".

The meeting has also discussed issues relating to corporate governance and human resources development concerning state-owned companies, sources said. Chidambaram said that some decisions had been taken and would be communicated to the Cabinet shortly.

In order to comply with the Sebi's minimum public holding norms, over 100 private and public sector companies are required to offload shares aggregating about Rs 30,000 crore.

Sebi had already provided various fast-track routes including OFS (Offer for Sale) and IPP (Institutional Placement Programme) to help companies offload equity. They have also been allowed to meet the regulatory norms by issuing rights or bonus shares.

The norms are expected to improve corporate governance and help in protecting the interest of the minority shareholders.