Sebi proposes three-phase process for re-classification of promoters

The issue of re-classification had assumed significance at the time of implementation of minimum public shareholding (MPS) norms

The Sebi on Tuesday proposed a three-phase process for re-classification of promoters as public shareholders. In the first stage, the concerned promoter shareholder or the company will have to file an application to the stock exchange requesting re-classification. In the next stage, the request will go to the board of directors. 

The board will then provide its recommendation, which will be placed before the shareholders. 

In the third and final stage, the proposal will be put before the shareholders in a general meeting and approved through an ordinary resolution. The concerned promoter will not be permitted to vote on such resolution. Also,