SEBI’s proposal on minimum shareholding and delisting is a step forward
The proposed changed in minimum shareholding norms will allow bigger companies to come out with smaller IPOs. The immediate beneficiary of the move will be the largest insurer in the country – Life Insurance Corporation of India
November 23, 2020 / 10:05 AM IST
The Securities and Exchange Board of India (SEBI) has placed consultation papers in the public domain on minimum offering during new listings and the de-listing process. Here's our take on them:
Minimum Public Shareholding (MPS)
SEBI has proposed to reduce the minimum offer size in an initial share sale, whereby companies with a post-issue capital of above Rs 10,000 crore would be required to offer at least a 5 percent stake in the IPO. The present norm states that companies with...