Paving way for sale of public sector unit (PSU) shares worth an estimated Rs 60,000 crore over three years, the government has notified rules for minimum 25 per cent public shareholding in listed state-owned firms. To comply with these norms, over 30 listed PSUs will need to raise their public shareholding to a minimum 25 per cent by August 21, 2017, as per a notification for amendment to the Securities Contracts (Regulation) Rules.
The move would help in promoting wider investor base in listed state-run companies and boost the government's plan to raise funds from a disinvestment programme. Previously, listed PSUs were required to have at least 10 per cent public holding, whereas the minimum public holding in non-PSU listed firms is already 25 per cent.
The non-PSUs were asked in June 2010 to attain minimum 25 per cent public shareholding within three years. Following the expiry of this deadline in June 2013, 105 listed companies were found non-compliant with these norms and necessary action initiated against them by regulator Sebi. "... every listed public sector company which has public shareholding below 25 per cent... shall increase its public shareholding to at least 25 per cent, within a period of three years, in the manner, as may be specified, by Sebi," the finance ministry has said in its new notification.
