India Business Journal - Public float of 5% mandated post-CIRP

MONEY

Public float of 5% mandated post-CIRP

IBJ Bureau
Dec 30, 2020

The Securities and Exchange Board of India (SEBI) has mandated that businesses rising from insolvency proceedings must have a minimum of a 5 per cent upfront public shareholding, if the decision has resulted within the public shareholding falling beneath 10 per cent. The transfer is geared towards curbing volatility and manipulation within the share costs of those companies. The markets regulator has mentioned that these companies could be given 12 months to attain a public shareholding of 10 per cent from the date their shares are admitted for re-trading on the exchanges and 36 months to achieve 25 per cent.