Government may roll back new listing norms
10 Jun 2010
Quickly backtracking on its decision to make it compulsory for listed companies to have at least 25 per cent public holding, a senior finance ministry official today said the ministry may consider changes in the ruling.
"The ministry of finance and the department of disinvestment are receiving different points of view from public sector enterprises and other stakeholders. So, if there is any need for modification or correction or amendment, that will be done," finance secretary Ashok Chawla told reporters at a CII seminar in New Delhi.
Likewise, market regulator Securities and Exchange Board of India (SEBI), which was reported to be apprehensive about the impact of the such a decision on the stock market, said it was also getting the feedback on the issue.
The finance ministry had recently come out with a notification asking all the listed companies to reduce promoters holding to at least 75 per cent. The listed companies will have to increase public holding by at least 5 per cent each year to comply with the norms (See: See: Listed companies required to maintain 25 per cent public holding).
SEBI executive director Usha Narayanan said, "We are getting feedback from the markets."
The concept of 25 per cent public holding was first floated by the finance ministry in 2008, but changes in the regulations were announced only last week.
