SEBI has taken a big decision in the board meeting on 12 September. Now big companies presenting IPOs will get 10 years to follow the Minimum Public shareholding (MPS). SEBI chairman Tuhin Kant Pandey gave this information to the media. If an IPO with 50,000 crore to Rs 1 lakh crore market capitalization is introduced, then it will have to follow the rule of 25 % minimum public shareholding in 5 years. Right now such companies get only 3 years for this.
A company with a market captivity issue will have more than Rs 1 lakh crore after the issue, it will have to get this MPS level in 5 years if its minimum public shareholding is 15 per cent. He will get 10 years to follow the rule of 25 % minimum public shareholding. SEBI gave this information. It is said that the company will get a lot of relief from the new rule. The decision was taken at the meeting of SEBI’s board.
On September 12, the third meeting of the board was chaired by Tuhin Kant Pandey, the new chairman of SEBI. The chairman told about the important decisions that took place today after the meeting. The market was waiting for this meeting. Big companies were already expected to get relief in IPO rules.