PSUs get 3rd lifeline to meet free-float norms, deadline extended by 2 yrs

Regulatory sources say while Sebi is responsible for the implementation of the minimum public shareholding requirement, it is the government which has the powers to set deadlines

The Securities and Exchange Board of India (Sebi) has thrown another lifeline to public sector undertakings (PSUs) to achieve 25 per cent public shareholding, a key corporate governance requirement, which private sector listed entities had to achieve by June 2013. 

According to sources, the capital markets regulator has extended the August 21 deadline by another two years. The move comes as a relief to over three dozen PSUs in which the government shareholding is in excess of 75 per cent. At the current market rate, disinvestment of close to Rs 250 billion would have been required if these companies were