 "capital market, corporate governance")
The objective and rationale of the recent Securities and Exchange Board of India (Sebi) decision to relax the minimum public shareholding (MPS) requirement at the time of listing and provide longer timelines for meeting the regulatory threshold for large issuers need to be examined from the point of view of public investors and corporate governance.
The regulator’s stated objective is to facilitate initial public offerings (IPOs) by large companies. The rationale given includes that substantial dilution would be difficult for the market to absorb; companies may not need more funds; immediate dilution can lead to oversupply of shares in the
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