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As part of the budget speech in July 2019, the Indian Finance Minister announced that the Government has asked SEBI to consider raising the minimum public shareholding (MPS) in Indian listed companies from 25% to 35%. This proposal (which, we understand, will mean a higher MPS requirement than in many other jurisdictions globally), allied with the Government’s move to also increase the public float in listed public sector undertakings, is expected to enhance India’s weightage in the global emerging markets index, which takes into account the free-float capital of the constituent companies. We expect SEBI to first come out with a detailed discussion paper on the proposal and invite public comments before implementing any changes.

Click to read more – India Update_ Increase of Minimum Public Float