Meaning of the term Public:
"Public" means person’s other than -
I.
The promoter and promoter group;
II.
Subsidiaries and associates of the company.
Explanation: For the purpose of this clause
the words "promoter” and "promoter group” shall have the same meaning
as assigned to them under the Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations, 2009.
Meaning of the term “Public Shareholding”:
"Public
shareholding" means equity shares of the company held by public and shall
exclude shares which are held by custodian against depository receipts issued
overseas
Amended Provision:
I.
At least twenty five per cent of each class or kind of
equity shares or debentures convertible into equity shares issued by the
company was offered and allotted to public in terms of an offer document; or
II.
At least ten per cent of each class or kind of equity shares or debentures
convertible into equity shares issued by the company was offered and allotted
to public in terms of an offer document if the post issue capital of the
company calculated at offer price is more than four thousand Cr. rupees;
Provided that the requirement of post issue capital being more
than four thousand Cr. rupees shall not apply to a company whose draft
offer document is pending with the Securities and Exchange Board of India on or
before the commencement of the Securities Contracts (Regulation) (Amendment)
Rules, 2010, if it satisfies the conditions prescribed in clause (b) of
sub-rule 2 of rule 19 of the Securities Contracts (Regulation) Rules, 1956 as
existed
Provided
further that the company, referred in sub-clause (ii), shall bring the public
shareholding to the level of at least twenty five per cent by increasing its
public shareholding to the extent of at least five per cent per annum beginning
from the date of listing of the securities, in the manner specified by the
Securities and Exchange Board of India .
Provided
further that the company may increase its public shareholding by less than five
per cent in a year if such increase brings its public shareholding to the level
of twenty five per cent in that year
Continuous
Listing Requirement:
(1)
Every listed company shall maintain public shareholding of at least
twenty five per cent
Provided that
any listed company which has public shareholding below twenty five per cent on
the commencement of the Securities Contracts (Regulation) (Amendment) Rules,
2010, shall bring the public shareholding to the level of at least twenty five
per cent by increasing its public shareholding to the extent of at least
five per cent per annum beginning from the date of such commencement, in
the manner specified by the Securities and Exchange Board of India.
Provided
further that the company may increase its public shareholding by less than five
per cent in a year if such increase brings its public shareholding to the level
of twenty five per cent in that year.
(2)
Where the public shareholding in a listed company falls below
twenty five per cent at any time, such company shall bring the public
shareholding to twenty five per cent within a maximum period of twelve months
from the date of such fall in the manner specified by the Securities and
Exchange Board of India."
Time Limit Given to Companies:
Listed companies were given three years time
to meet the requirement of minimum public holding. While the private companies
have to meet the norms by June 2013, for PSUs the deadline is August 2013.
Manner of reducing the promoter holding:
Following manners are specified by SEBI –
·
Institutional Placement Programme (means a further public offer of eligible securities by an
eligible seller, in which the offer, allocation and allotment of such
securities is made only to qualified institutional buyers)
·
Offer for Sale
·
Auction
·
Select Bonus Issue
Select Right Issue
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