 "Sebi sets conditions on promoters selling holdings to achieve MPS norms")
The Securities and Exchange Board of India (Sebi) has set conditions on promoters selling their holdings in the open market to achieve minimum public shareholding (MPS) norms.
The regulator has issued a list of disclosures that companies will have to make at least a day prior to such sale. These include the intention of the promoter to sell; details of promoters proposing to divest; total number of shares to be divested; and period within which the sale will be completed.
In addition to existing methods such as offer for sale and institutional placement programme, Sebi has allowed two new avenues for companies to meet the MPS norms. These include open market sale and qualified institutional placements. Promoters, however, can dilute a maximum of 2 per cent under these new routes.
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