Minimum Public Shareholding (MPS)

SEBI has recently proposed more flexibility in the rules around Minimum Public Shareholding (MPS) and Minimum Public Offer (MPO) for companies looking to get listed. The aim is to simplify the fundraising process for issuers in India, encouraging easier access to capital markets.

What is Minimum Public Shareholding (MPS)?

MPS is a SEBI regulatory requirement under the Securities Contracts (Regulation) Rules, 1957 and the Listing Obligations and Disclosure Requirements (LODR).
It requires at least 25% of a listed company’s equity shares to be held by the public (non-promoters).
If promoters hold more than 75%, they must reduce their holding to meet this threshold.
Promoters can do this by:
- Placing shares with institutional investors
- Issuing rights shares to the public, thereby diluting their stake

Objectives of MPS Rule

Improve market liquidity
Promote fair price discovery
Ensure broader participation and strengthen corporate governance

Compliance Deadlines

Newly listed companies must comply within 3 years of listing.
Companies with a market cap over ?1 trillion get 5 years to meet the 25% MPS.
If public shareholding falls below 25%, companies have 12 months to restore it.

Why This Matters

SEBI’s push to make these rules more flexible is aimed at easing capital raising while maintaining market integrity.
It helps companies grow by making compliance more manageable.

Source: INDIAN EXPRESS

Join Our Telegram

Anti-Defection Law in India

Anti-Defection Law in India

18 Mar, 26
SHARE

The Supreme Court of India recently gave a final three-week deadline to the Telangana Assembly Speaker to decide pending disqualification petitions against defecting MLAs under the Anti-Defection Law. What is the Anti-Defection Law? The Anti-Defection Law was introduced through the 52nd Amendment (1985), which added the Tenth Schedule to the

Rat-Hole Mining

18 Mar, 26
SHARE

A major disaster unfolded in East Jaintia Hills, Meghalaya, when at least 18 workers died following an explosion in an illegally operating rat-hole coal mine. This incident highlights the continued prevalence of rat-hole mining despite bans imposed by the National Green Tribunal (NGT) and the Supreme Court of India. Rat-hole mining is driven

India’s Aviation Sector

17 Mar, 26
SHARE

India’s aviation sector has grown rapidly, becoming a major economic success story. However, regulatory oversight has not evolved at the same pace. Data-driven monitoring of fares and market behavior is essential to ensure fair competition, prevent market abuse, and shift from reactive crisis management to proactive regulation. Challen

Federalism in India

14 Mar, 26
SHARE

Recently, a high-level committee on Union–State relations submitted its first report to the Government of Tamil Nadu. The report examines the distribution of powers and responsibilities between the Union and the States, highlighting ongoing debates regarding the balance between central authority and state autonomy. This discussion is clos

India–UAE Economic Partnership

14 Mar, 26
SHARE

The relationship between India and the United Arab Emirates has evolved from a traditional energy-based partnership into a comprehensive economic and strategic relationship. Over the years, strong political trust, growing trade, and expanding investments have transformed bilateral ties into a diversified economic corridor. The economic partnership