Sebi unveils reform measures;PSUs need 25% public shareholding

Initiating a wide range of measures, Sebi today asked all listed PSUs to ensure at least 25 per cent public shareholding within three years and unveiled new norms for research analysts, employee stock option schemes as well as reforms to boost the primary market.
Besides, the capital market watchdog has decided to share Know Your Client (KYC) information with entities regulated by other financial sector watchdogs, a move aimed at having common norms across the financial market.
Approving a slew of reform measures, the Sebi board today said that all listed PSUs should achieve a minimum public shareholding of 25 per cent within three years.

The decision, aimed at ensuring uniformity among listed entities irrespective of their promoters, would also help the government raise close to Rs 60,000 crore from the sale of shares in around 36 listed PSUs where the public shareholding is less than 25 per cent.
Under current norms, government undertakings should have at least 10 per cent public shareholding whereas for non-PSU firms the minimum level is 25 per cent.
"Today the Sebi board has taken some very very important decisions," Sebi chairman U K Sinha told reporters after the board meeting here.

Looking to revive the primary market, Sebi has eased norms related to the size of an IPO and pricing of preferential shares while allowing anchor investors to have a greater exposure to the offering.

All companies with a post-issue capital above Rs 4,000 crore are compulsorily required to offer at least 10 per cent stake in the IPO. In other IPOs, minimum dilution to public will be 25 per cent, or Rs 400 crore, whichever is lower.
Meanwhile, in efforts to safeguard investors from manipulative reports and usher in more transparency, the board has approved detailed norms for 'research analysts' that include stringent disclosure requirements.