Multiple choice

What must be the minimum public shareholding in listed companies in India according to new rules announced by SEBI in 2010?

  1. 10%

  2. 15%

  3. 20%

  4. 25%

  5. 30%

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Government has announced amendments to the Securities Contracts (Regulation) Rules on June 04, 2010. The amended rules make it mandatory for all listed companies to have a minimum public shareholding of 25 per cent. Those below this level will have to get there by an annual addition of at least 5 per cent to public holding.

The rules till now had also set the minimum float at 25 per cent, but stock exchanges and the Securities and Exchange Board of India (SEBI) had the power to waive or relax this for public sector undertakings and companies in the information technology, media, entertainment and telecommunications sectors.