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 2017 which 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any penal action already initiated by Stock Exchanges from March 1, 2020 till date for such non-compliance may be withdrawn.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.