SEBI Consultation on Minimum Public Shareholding and Offer
Why in the news
SEBI floated a paper to ease fundraising and give listed firms longer to comply.
Key facts
- MPO: least equity offered to the public at the IPO; Rule 19(2)(b) of SCRR, 1957; tied to post-issue market capitalisation; SEBI proposes to raise it.
- MPS: least share held by non-promoters in a listed company; Rule 19A of SCRR.
Market-cap bands for MPO
- ₹4,000 crore to ₹50,000 crore
- ₹50,000 crore to ₹1 lakh crore
- ₹1 lakh crore to ₹5 lakh crore
- Above ₹5 lakh crore
| MPS | Present | Proposed (₹50,000 crore to ₹1 lakh crore) |
|---|---|---|
| Level and time | 25% in 3 years | 15% in 5 years, then 25% in 10 |
Exam angle
- Rules: 19(2)(b) for MPO, 19A for MPS.