{"id":59999,"date":"2025-08-19T13:36:54","date_gmt":"2025-08-19T08:06:54","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=59999"},"modified":"2025-08-20T13:31:39","modified_gmt":"2025-08-20T08:01:39","slug":"minimum-public-shareholding-mps","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/minimum-public-shareholding-mps\/","title":{"rendered":"Minimum Public Shareholding (MPS)"},"content":{"rendered":"<h2><b>Minimum Public Shareholding Latest News<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">SEBI recently proposed to increase the flexibility of minimum public shareholding (MPS) and minimum public offer (MPO) for companies aspiring to get listed, aimed at \u201csimplifying fund-raising by issuers in India.<\/span><\/p>\n<h2><b>About Minimum Public Shareholding\u00a0<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Minimum Public Shareholding (MPS) rule is a <\/span><b>regulatory requirement laid out by SEBI <\/b><span style=\"font-weight: 400;\">under the <\/span><b>Securities Contracts (Regulation) Rules, 1957<\/b><span style=\"font-weight: 400;\">, and reinforced by the Listing Obligations and Disclosure Requirements (LODR) Regulations.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is <\/span><b>applicable to all listed companies<\/b><span style=\"font-weight: 400;\"> in India.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As per these rules, <\/span><b>all listed companies<\/b> <b>must ensure<\/b><span style=\"font-weight: 400;\"> that <\/span><b>at least 25% of their total issued and paid-up equity share capital<\/b><span style=\"font-weight: 400;\"> is <\/span><b>held by public shareholders<\/b><span style=\"font-weight: 400;\">\u2014i.e., <\/span><b>non-promoters and non-promoter group entities.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Where promoters are holding more than 75%,<\/b><span style=\"font-weight: 400;\"> they have to <\/span><b>mandatorily divest additional shares to the public <\/b><span style=\"font-weight: 400;\">to comply with the MPS rule.<\/span>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Such stake reduction could be done <\/span><b>either by placing shares with institutions or by issuing rights shares <\/b><span style=\"font-weight: 400;\">to dilute their holdings.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>objective <\/b><span style=\"font-weight: 400;\">is to:<\/span>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Enhance liquidity<\/b><span style=\"font-weight: 400;\"> in the market<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Promote <\/span><b>fair price discovery<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensure <\/span><b>broader participation <\/b><span style=\"font-weight: 400;\">and <\/span><b>corporate governance<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>Newly listed companies<\/b><span style=\"font-weight: 400;\"> are expected to meet this requirement<\/span><b> within three years from <\/b><span style=\"font-weight: 400;\">the <\/span><b>date of listing.<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b>For issuers with a post-issue market cap of over \u20b91 trillion<\/b><span style=\"font-weight: 400;\">, the deadline for 25% MPS is <\/span><b>five years.<\/b><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><b style=\"font-size: inherit;\">If the public shareholding falls below 25% <\/b><span style=\"font-weight: 400;\">at any time, such <\/span><b style=\"font-size: inherit;\">company shall bring <\/b><span style=\"font-weight: 400;\">the public shareholding to <\/span><b style=\"font-size: inherit;\">25% within <\/b><span style=\"font-weight: 400;\">a maximum period of<\/span><b style=\"font-size: inherit;\"> 12 months<\/b><span style=\"font-weight: 400;\"> from the date of such fall.<\/span><\/li>\n<\/ul>\n<p><b>Source<\/b><span style=\"font-weight: 400;\">: <\/span><a href=\"https:\/\/www.thehindu.com\/business\/sebi-proposes-to-ease-minimum-shareholding-norms-in-view-of-expanding-market\/article69948722.ece\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">TH<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Minimum Public Shareholding is a regulatory requirement laid out by SEBI under the Securities Contracts (Regulation) Rules, 1957. Read more about Minimum Public Shareholding (MPS), Objectives, Latest News.<\/p>\n","protected":false},"author":23,"featured_media":60019,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[2259,21,22,23],"class_list":{"0":"post-59999","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-minimum-public-shareholding","9":"tag-prelims-pointers","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/59999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=59999"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/59999\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/60019"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=59999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=59999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=59999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}