SEBI relaxes compliance of minimum public shareholding requirement
May 14, 2020
In view of the prevailing business and market conditions, SEBI has relaxed the applicability of its circular dated 10 October 2017which prescribes the procedure to be followed by stock exchanges against listed entities, their promoters and directors, including levy of fines, freeze of promoter holding etc, which are non-compliant with the Minimum Public Shareholding (MPS) requirement under Regulation 38 of the SEBI (LODR) Regulations 2015.
Accordingly, stock exchanges have been advised not to take any penal action in terms of the aforesaid circular, with respect to listed entities for whom the deadline to comply with MPS requirements falls between the period from March 1, 2020 to August 31, 2020. Further, any penal action already initiated by Stock Exchanges from March 1, 2020 till date for such non-compliance may be withdrawn.
This Circular shall come into force with immediate effect. To refer to the SEBI circular dated 14 May 2020, click here.
This is intended for general information purposes only. The views and opinions expressed in this article are those of the author/authors and does not necessarily reflect the views of the firm.
The Bar Council of India does not permit solicitation of work and advertising by legal practitioners and advocates. By accessing the Shardul Amarchand Mangaldas & Co. website (our website), the user acknowledges that:
The user wishes to gain more information about us for his/her information and use. He/She also acknowledges that there has been no attempt by us to advertise or solicit work.
Any information obtained or downloaded by the user from our website does not lead to the creation of the client – attorney relationship between the Firm and the user.
None of the information contained in our website amounts to any form of legal opinion or legal advice.
All information contained in our website is the intellectual property of the Firm.