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PSUs exempted from 25% public holding

business Updated: Aug 09, 2010 21:19 IST
HT Correspondent
HT Correspondent
Hindustan Times
government

The government on Monday exempted public sector undertakings from the new rules that require stock market listed companies to have a minimum public float of 25 per cent.

The regulations, set out by the government in June, requires listed companies with a public shareholding of less than 25 per cent to increase it by a minimum of 5 per cent a year.

The rules, however, have been amended. Government-owned companies will only need a minimum of 10 per cent public holding in three years, a finance ministry spokesperson said on Monday.

Public shareholding in private will still need to be at least 25 percent, he said.

Standing Conference of Public Enterprises (Scope)—the apex body of public sector enterprises—had opposed the norm saying PSUs should be kept out of the norm of 25 per cent mandatory public holding.