Govt move to raise public shareholding in Cos

Govt move to raise public shareholding in Cos

Agency News

New Delhi, Jul 5 : Finance Minister Nirmala Sitharaman on Friday proposed to raise minimum public shareholding for listed companies to 35 per cent from the current 25 per cent.Sitharaman said she had suggested this to SEBI, which would consider it in the coming days.

If and when the market regulator approves, promoters of such companies cannot hold more than 65 per cent from the current limit of 75 per cent.In June 2010, the regulator had given companies three years to a ensure a minimum public float of at least 25 per cent.

According to one estimate, over 250 companies which have over 65 per cent promoter shareholding will be impacted.

The finance minister also proposed to "give relief" in levy of Securities Transaction Tax (STT) by restricting it only to the difference between settlement and strike price in case of exercise of options.(UNI)