Sebi to get tough with companies with high promoter holding
The Sebi has provided various options over the recent months to help the companies meet minimum public shareholding criteria, by permitting options of rights/bonus issuances of shares, as also new routes like Offer for Sale (OFS) and Institutional Placement Programme (IPP).
Besides, in exceptional situations, where any company has a special difficulty in following the prescribed methods because of reasons peculiar to it, Sebi Chairman is authorised to approve a specific solution on case-to-case basis.
The listed entities desirous of achieving the minimum public shareholding requirement through other means can approach Sebi with the appropriate details, while companies can also seek any relaxation within the available methods.
However, Sebi is not willing to extend the deadline any further, which was set way back in 2010, the official said.
Sebi is even willing to allow 'corporate restructuring' as a means of achieving minimum public shareholding, but the companies desirous of using this method are required to seek prior approval from the regulator, he added.
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