Markets regulator Sebi’s board on Wednesday approved the new shareholding norms for Corporate Insolvency Resolution Process companies and decided to give relaxation in minimum promoter contribution in follow-on public offer.
In respect of companies that continue to remain listed due to implementation of the resolution plan under the Insolvency and Bankruptcy Code, Sebi said such firms will be required to have at least 5 per cent public shareholding at the time of their admission to dealing on the stock exchange.
At present, there is no such minimum requirement, the regulator said in a statement after the board meeting.
Further, such companies will be provided 12 months to achieve public shareholding of 10 per cent from the date such shares of the company are admitted to dealings on the stock exchange and 36 months to achieve public shareholding of 25 per cent from the said date.
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