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Informist, Wednesday, Jul 31, 2024

NEW DELHI - The government today extended the deadline for state-owned companies to meet the Securities and Exchanges Board of India's minimum public shareholding norm of 25% by two years to Aug 1, 2026, the finance ministry said in a release.

According to SEBI's mandate, all listed companies should maintain a minimum public shareholding of 25%.

In April, the finance ministry had asked five public sector banks to increase the minimum public shareholding to 25% by Aug 1 (Thursday), however none of them could lower the government's holding within the deadline.

Of the five banks that don't comply with the norms, Bank of Maharashtra is positioned comparatively better, with a public shareholding of 13.54%, followed by Central Bank of India with 6.92%, UCO Bank with 4.61%, Indian Overseas Bank with 3.62%, and Punjab & Sind Bank with 1.75%. 

Department of Financial Services Secretary Vivek Joshi had told Informist in an interview on Friday that the Department of Economics Affairs had already written to SEBI to extend the sunset date. 

These banks can take the qualified institutional placement route to reduce the shareholding as the law is in place and only needs the approval of their respective boards, Joshi had said.  End

Reported by Priyasmita Dutta

Edited by Tanima Banerjee

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