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Sebi's higher float proposal for IBC firms could run into hurdles

Several legal experts plan to highlight the challenges in implementing all three options recommended by the regulator

Sebi
The move to seek higher float was triggered by eye-popping rise in shares of Ruchi Soya Industries.

The Securities and Exchange Board of India’s (Sebi’s) proposal to entail higher free-float for companies relisting after insolvency proceedings may run into implementation hurdles. Several legal experts plan to highlight the challenges in implementing all the three options recommended by Sebi in a discussion paper floated by it last week. In the discussion paper —Recalibration of threshold for Minimum Public Shareholding (MPS) norms, enhanced disclosures in Corporate Insolvency Resolution Process (CIRP) cases — the market regulator has proposed that companies ...