Sebi norms on 25% public stake soon

“Sebi is working on rules and regulations to ensure that all listed companies have a minimum 25% public holding as was assured in the Parliament,” Bajpai said.

Meanwhile, Sebi also clarified that the new creeping acquisition norms will be effective from the prospective effect and not from the retrospective effect. The second amendment to the Sebi (Substantial Acquisition of Shares and Takeover) Regulation 2004 were notified on December 30, 2004 and will be effective from that date and hence will not cover the promoters’ holdings prior to that date.

Talking to reporters on the sidelines of a seminar organised by the Bombay Management Association (BMA), Bajpai said: “There is no proposal to ask the promoters who already hold more than 75% stake in their company to bring down to the level of 55%. The new rules will be applicable to only those promoters who increase their holding through creeping acquisition and cross the limit of 55%. For them a provision of mandatory offer is inserted.”

Earlier in the day, Bajpai conferred the ‘Finance Man of the Year Award 2004’ on M Damodaran, chairman and managing director, IDBI Ltd, at the 11th Annual Financial Services Conference organised by BMA.