Budget 2019: Minimum public float in listed companies now at 35%

High promoter holding remains the biggest hurdle for raising India's weight among key global indices

The Centre is planning to increase the minimum public float in listed firms to 35 per cent from 25 per cent now. The government has directed the markets regulator Securities and Exchange Board of India (Sebi) to vet the proposal and work on its implementation.

“It is the right time to consider increasing minimum public shareholding (MPS) in listed companies. I have asked Sebi to consider raising the threshold to 35 per cent,” said Finance Minister Nirmala Sitharaman in the Budget speech. 

Market players say the proposal will help attract higher foreign capital and increase India’s weight in MSCI and FTSE indices.