Captital market regulator Securities and Exchange Board of India (SEBI) on Friday said that companies will have to increase public shareholding to a minimum of 25% by August 2013 and there will be no relaxation of the guidelines.
“Companies will have to see that public shareholding is 25% as per the time-frame,” said UK Sinha, chairman, SEBI, “Some companies feel that SEBI will relax this, but let me tell you I am going to make it difficult.”
For privately run companies the deadline is June 2013, while it is August 2013 for the public sector firms.
According to the capital market regulator 181 non-PSUs and 16 PSUs are yet to comply with SEBI’s public shareholding rules. “Around R27,000 crore will have to be mobilised by June 2013 by non-PSUs and 16 PSUs will have to mobilise R12,000 crore,” said Sinha.
On the revamping of initial public offering (IPO) process, Sinha said, “entire process will be done in three-four months.”
He refused to comment on the controversy relating to General Anti Avoidance Rules (GAAR).