Budget impact: Sebi may give listed firms two years for 35% public holding

Regulator, however, concerned with implications of takeover code; to start public consultation soon

The Securities and Exchange Board of India (Sebi) may give listed companies two years to increase minimum public shareholding from 25 per cent to 35 per cent, a proposal floated in the Union Budget 2019-20.

“The compliance and time frame would be similar for all listed companies, including public sector undertakings,” said a government official in the know, adding Sebi would come up with a detailed framework after consultation with all stakeholders. 

The market regulator is examining all the modalities and will issue a discussion paper soon. A source said the regulator was concerned particularly with the implications of the