Follow Us:
Saturday, December 04, 2021

Listed PSUs Hindustan Copper,ITDC,MMTC,STC,Neyveli Lignite sell shares worth Rs 2,500 cr

Sebi had clamped down on more than 100 private sector companies.

Written by PTI | New Delhi |
August 12, 2013 5:17:08 pm

Listed public sector companies have sold shares worth over Rs 2,500 crore to comply with minimum public shareholding norms for which the deadline ended last week,a report said today.

Capital market regulator Securities and Exchange Board of India (Sebi) norms required all state-run companies to have at least 10 per cent public shareholding by August 8.

*Stocks: Top Gainers/Top Losers

Till June 30,as many as 16 public sector companies were required to meet Sebi’s minimum public shareholding norms. Amongst these NMDC Ltd,Rashtriya Chemicals & Fertilizers Ltd,State Bank of Mysore had complied with the guidelines.

According to a report by Prime Database,public sector firms namely Hindustan Copper Ltd,ITDC,MMTC,STC,National Fertilizer Ltd and Neyveli Lignite Corporation have recently complied with the deadline.

Search: India Inc A,B,C

Besides,the excess government holding in six other listed PSUs — HMT,Fertilizers & Chemicals Travancore,ITI,Andrew Yule,Hindustan Photo Films and Scooters India – would be transferred out to a Special National Investment Fund.

“This puts to rest the continuing concerns raised by several analysts that PSUs shall not comply citing one reason or the other and that some relaxation shall be granted to them,” the report noted.

Since April 2011,the government has garnered a total of Rs 2,501 crore by diluting its stake in PSUs in order to meet Sebi’s guidelines.

* Mutual Funds: Top Profit-making Schemes

Out of the total, Rs 2,086 crore has been raked in through the Offer for Sale (OFS) mechanism and another Rs 424 crore through the Institutional Placement Programme (IPP) route.

Both these instruments were designed specifically by Sebi for promoters to divest their holdings to meet the regulator’s norms.

In June,Sebi had clamped down on more than 100 private sector companies that failed to comply with the minimum 25 percent public holding norms.

Sebi had acted against 105 private companies that failed to meet the norms within the deadline of June 3,despite repeated reminders and various relaxations provided to the companies to help them meet the requirements. Since then,20 of these companies have complied with the requirement.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest News Archive News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard