What is the minimum public shareholding (MPS) mandated by SEBI for Private Companies and PSUs respectively?
What is the minimum public shareholding (MPS) mandated by SEBI for Private Companies and PSUs respectively?
[A]75% and 90%
[B]90% and 75%
[C]10% and 25%
[D]25% and 10%
25% and 10%
As per SEBI orders the companies should decrease the promoter holdings to 75% in case of Private Companies (25% in open market) and 90% in case of PSUs (10% in open market). SEBI has taken up this reform so that there are not price manipulations of the individual stocks and companies are facing punitive actions for non-compliance.