The Securities and Exchange Board of India (Sebi) on November 16 in its board meeting made some changes in the minimum public shareholding norms for listed companies going through the Corporate Insolvency Resolution Process (CIRP).

The market regulator asked companies that continue to remain listed as a result of the implementation of the resolution plan to have at least 5 percent public shareholding at the time of starting of trading on the stock exchange/s. At present, there is no such minimum requirement for companies. Further, for such companies, the regulator provided one year time to achieve public shareholding of 10 percent from the day of re-listing of such shares and 3 years to achieve public shareholding of 25 percent from the said date.

Currently, during Corporate Insolvency Resolution Process where the public shareholding falls below 10 percent, such listed companies are required to bring the public shareholding to at least 10 percent within a period of 18 months and to 25 percent within 36 months.

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