In SEBI, paper, it is proposed to increase MPOs for companies coming close to listing, expand the deadline to achieve MPS post listing and subsequent. , Photo Credit: Francis Mascarenhas
According to a consultation paper issued by the Securities and Exchange Board of India (SEBI) on August 18, “has proposed to increase the flexibility of minimum public shareholding (MPS) and minimum public proposal (MPO) for companies listed by the issuer issuers in India aimed at simplifying funds.
In SEBI, paper, it is proposed to increase MPOs for companies coming close to listing, expand the deadline to achieve MPS post listing and subsequent.
Paper has proposed to convert the threshold bucket to Rs for the post-insurance market capitalization (M-CAP). 4,000 crores to Rs. 50,000 crores, Rs. From Rs 50,000 crore. 1 lakh crore rupees. From Rs 1,00,000 crore. Above 5 lakh crore rupees. 5 lakh crores. Currently, it is Rs. 4,000 crores, Rs. Above 1 lakh crore rupees. 1 lakh crore. SEBI has also extended the timeline to follow MPs.
SEBI said, “IS for issuers with market hats above 50,000 crore, but, less than or equal to or equal to, it is proposed that the time -line can be extended from the date of listing from the current 3 years to 5 years for compliance with 25% of MPs. This time was proposed to be fixed in five years to get 15% shareholding and 10 years to get 25% sharing MPs.
In another proposal, the capital market regulators sought a public response to reducing the MPO for a bucket starting from Rs. 50,000 crore to 1 lakh crore rupees.
As per the current rules according to the Securities Contract Regulations Rules (SCRR), “Issue with a post issue market cap is required to ensure an MPO of ₹ 5,000 crore above 1,00,000 crore and is mandatory to increase at least 10% within 2 years within 2 years from the list.
For large issuers, it can be difficult to reduce enough stake through an IPO as the market cannot absorb the shares sold and discourage the new listing, SEBI argued. In addition, it has been said that “to make sufficient equity weakening to meet the requirements of MPs, it may be an oversuply of shares in the market immediately after the IPO, which can affect share prices regardless of the company’s financial strength.
“For very large market cap companies, it is a welcome offer because it will reduce the requirements to seek ad hoc or once sebi comfort,” said Arka Mookerji. Partner, JSA Advocates and Solicitor.
Published – August 18, 2025 09:45 pm IST
