Action will be taken against non-compliant firms: Sebi
Kolkata: Market watchdog SEBI on Tuesday said strong action would be taken against companies that are not complying with minimum 25 percent public shareholding norms.
"SEBI has been insisting on a minimum shareholding of 25 percent by the public. There are 200 non-PSU companies which were not complying with the guideline," SEBI Chairman U K Sinha said at a CII interaction here.
Sinha said that out of the 200, trading has been suspended in 37 companies, while 51 companies are taking no measures to comply with the guideline.
"The deadline for complying with the guideline falls on June 2013," he said.
"Those who do not follow have to suffer," Sinha said.
Stating that growth of the economy had been largely driven by bank finance, Sinha said SEBI would shortly introduce guidelines for developing the corporate bond market so that they were actively traded in the stock markets.
Interest of the FIIs would have also to be developed in the corporate bond market, he said.
Sinha suggested that regional stock exchanges should not take risks without having adequate capital and a clearing corporation.
Regarding listing of SMEs on the exchanges, Sinha said that the recent budget announcement had said that small and medium units need not float an IPO for trading their scrips on the bourses.