New Delhi: After ensuring minimum 25 per cent public shareholding at private sector listed companies, market regulator Sebi is contemplating similar norms for PSUs, but a final decision would be taken as per views of the new govenment at the Centre.
There are close to 30 listed PSUs where public investors hold less than 25 per cent stake, while the existing norms require a minimum public holding of only 10 per cent for them. The Sebi which regulates all listed companies, has suggested to the finance ministry an increase in minimum public shareholding in listed Public Sector Undertakings (PSUs) as part of its efforts to deepen the markets and increase public float, official sources said.
However, a final decision in this regard can be taken only after getting the views of new finance minister Arun Jaitley, who took charge of his office on Tuesday.
The major PSUs where government holding currently stands at more than 75 per cent include Coal India, SAIL, MMTC, NHPC, NMDC and SJVN. The market watchdog is of the view that the PSUs can be given a three-year time period for meeting the new limits, sources said, while adding that the move would also help in promoting wider participation from investors and boost government’s plan of raising funds through disinvestment.
A similar time frame was given to private sector companies in 2010 to achieve minimum 25 per cent public holding, while PSUs were also given three years in the same year to increase their public shareholding to at least 10 per cent.
