As a deadline looms large for PSUs to achieve minimum 10 per cent public holding, Sebi on Tuesday said the Government has assured it on complying with these norms, even as the market regulator cautioned that non- compliant entities would face strong action.
As per Sebi's minimum public shareholding norms, all the listed public sector entities need to have at least 10 per cent public holding by August 8.Earlier, the deadline for the private sector companies to attain a minimum 25 per cent public holding expired on June 3 and Sebi took strong actions against promoters and directors of 105 non-compliant companies as on that date.
Asked whether Sebi would initiate stringent actions in case of non-compliance by PSUs as well, Sebi Chairman U K Sinha said: “Yes, but I will also like to say that the government has assured me through a letter that they are going to implement it.”
About ten PSUs still need to achieve minimum 10 per cent public float by sale of shares cumulatively worth about Rs 3,000 crore.