Sebi mulls easing minimum shareholding norms

CAPITAL markets regulator Sebi has proposed an overhaul of the norms dealing with minimum public shareholding by relaxing the deadline, as well as giving more flexibility in diluting the promoter stake.

- BENN KOCHUVEEDAN @Mumbai

The proposed framework, if implemented, will ease the immediate dilution burden on issuers, while ensuring gradual compliance with public shareholding requirements. As part of this approach aimed at ease of doing business, it has suggested retaining retail quota at 35%, in line with the existing regulations. Instead of reducing retail participation, Sebi is looking at addressing issuer's concerns by amending rules related to minimum public offer thresholds. This marks a shift from its earlier consultation paper, issued on July 31, which had proposed cutting retail quota for IPOs above ₹5,000 crore from 35% to 25%, citing difficulties faced by