Centre seeks extension to meet 25% public holding norm for IDBI Bank stake sale

IDBI Bank

The central government seeks an extension from the markets regulator for the 25 percent minimum public shareholding (MPS) norm for IDBI Bank after privatisation, according to CNBC TV-18 sources.

The channel on November 18 reported that the government is sticking to the December 16 timeline for receiving bids for the IDBI Bank.

According to the sources, if the Securities and Exchange Board of India (Sebi) allows both the government and Life Insurance Corporation (LIC) to be classified as public shareholders, the minimum public shareholding criterion will be met automatically.

Markets regulator Sebi mandates a minimum 25 percent of public shareholding for all listed entities, excluding state-owned companies, within three years of listing.