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

Biomedical Research Career Programme (BRCP)

Biomedical Research Career Programme (BRCP)

12 Nov, 25
SHARE

India’s Union Cabinet has recently approved Phase-III of the Biomedical Research Career Programme (BRCP), a key initiative aimed at advancing biomedical research and innovation in India. This move aligns with the vision of Viksit Bharat 2047, focusing on strengthening India’s innovation ecosystem and contributing to the Atmanirbhar

Carbon Capture, Usage, and Storage

12 Nov, 25
SHARE

The report from Climate Analytics highlights growing concerns about Asia's reliance on Carbon Capture, Usage, and Storage (CCUS) technologies, particularly in countries like China, Japan, South Korea, and Indonesia. What is Carbon Capture, Usage, and Storage (CCUS)? CCUS refers to a suite of technologies designed to capture carbon di

Financial Action Task Force (FATF)

10 Nov, 25
SHARE

The ongoing Financial Action Task Force (FATF) meetings in Paris are focused on deliberating the issue of state sponsorship of terrorism, particularly regarding how certain states may be involved in financing banned terrorist outfits and their proxies. The discussions are expected to highlight the financing of terrorism and the role of Pakistan

India-Qatar

08 Nov, 25
SHARE

The India-Qatar Joint Commission on Economic and Commercial Cooperation (JCEC) meeting marked a significant step in strengthening bilateral ties between India and Qatar, focusing on boosting trade, investment, and collaboration across several sectors. Key Outcomes of the India-Qatar Joint Commission Meeting: Ambitious Trade Target:

Food and Agriculture Organization (FAO)

08 Nov, 25
SHARE

India and the Food and Agriculture Organization of the United Nations (FAO) recently celebrated 80 years of partnership on World Food Day 2025. About the FAO The Food and Agriculture Organization (FAO) is a specialized agency of the United Nations established in October 1945. It is the oldest permanent specialized agency of the UN and pl