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SEBI won’t revisit 25% public holding norm in listed cos

The SEBI Chairman also underscored for ushering in transparency and corporate governance in the listed companies and said that the regular has already made electronic voting mandatory for election of board members of all listed companies.

SEBI wont revisit 25% public holding norm in listed cos

Chairman U K Sinha on Wednesday ruled out revisiting the existing norm for 25 percent public holding of shares in the listed companies, including the PSUs, and said that such a step will be a retrograde one.

“There is no proposal with SEBI to review the norm directing the listed companies with bourses, including the PSUs, to float 25 percent of its shares for public holding,” he told reporters here at a function.

“Such a move will be retrogressive and we have no intention to do so,” Sinha said in reply to a question whether the market regulator has any proposal to allow the promoters to increase sharing holding in a particular company beyond 75 percent.

The SEBI Chairman also underscored for ushering in transparency and corporate governance in the listed companies and said that the regular has already made electronic voting mandatory for election of board members of all listed companies.

Now that the market regulator has been armed with more powers, including recovery of penalty imposed on companies for financial and governance-related irregularities since amendment of the SEBI Act by Parliament last year, we will be taking more steps to regular the market in a transparent manner which, he said, will go a long way in protection small investors and shareholders.

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