Listed Cos. to ensure 25% public holding for continuous listing

Mumbai, Apr 13 (UNI) The Securities and Exchange Board of India(SEBI) today notified an amendment in Clause 40A and Clause 35 of Equity Listing Agreement.

''SEBI has decided to bring in policy changes to the continuous listing requirements in order to ensure availability of floating stock on a continuous basis and to bring about greater transparency in respect of disclosure of shareholding pattern of companies,'' a SEBI circular said.

Listed companies will be required to ensure minimum level of public shareholding at 25 per cent of the total number of issued shares of a class or kind for the purpose of continuous listing.

However, ''companies which, at the time of initial listing, had offered less than 25 per cent but not less than 10 per cent of the total number of issued shares of a class or kind, will be required to maintain the minimum level of public shareholding at 10 per cent of the total number of issued shares of a class or kind for the purpose of continuous listing,'' SEBI said.

''Companies which have, irrespective of the percentage of their shares with public at the time of initial listing, reached a size of two crore or more in terms of number of listed shares and Rs 1000 crore or more in terms of market capitalisation will be required to maintain the minimum level of public shareholding at 10 per cent of the total number of issued shares of a class or kind for the purpose of continuous listing, '' SEBI added.

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