MUMBAI: Sebi has decided to put on hold any action against non-compliance with the Minimum Public Shareholding (MPS) requirements in the wake of the COVID 19.
Sebi will go easy on the 25 per cent minimum public shareholding (MPS) requirement for the listed entities. The extant rules allow the regulator to take action against the erring promoters and directors, including levy of fines, freeze of promoter holding, etc.
After taking into consideration requests received from listed entities and industry bodies as well as considering the prevailing business and market conditions, Sebi decided to grant relaxation from the applicability of the October 10, 2017 circular which defines the MPS.
The regulator has relaxed the requirement for companies that were to have complied with the rule between March 1 and August 31, 2020.
A sebi statement said penal actions, if any, initiated by Stock Exchanges from March 1, 2020 till date for non-compliance of MPS requirements by such listed entities may be withdrawn.