PSUs will comply with shareholding norms: Sebi
Chennai: Market regulator Sebi on Friday said the government is committed to ensuring that public sector companies comply with the minimum public shareholding norms and will not be seeking any extension.
As per Sebi norms, private sector firms need to have a minimum public shareholding of 25 percent by June, while a threshold of 10 percent is required by PSUs by August.
"I can share with you that we have received confirmation from the government that it is very keen to complete the transactions with regard to Public Sector Undertakings (PSUs) and they will not be seeking any extensions," Sinha told reporters here after its Board meeting.
"Government's full commitment is there to follow (the norms) with regard to their own companies," he added.
Promoters of nearly 190 companies are yet to bring down their shareholding to the desired level to meet the guidelines, although Sebi has already provided various options to meet these norms.
Noting that good progress has been made by listed companies in complying with the norms, Sinha said that Sebi was "very hopeful that companies would be able to do it".
He said Sebi board on Friday discussed the actions it could take in case listed companies fail to comply with the minimum public shareholding norms.
Sinha added: "What consequences happen if somebody decides to violate Sebi instructions is a matter which is legal and should be well known. It is well known.
"If you decide to violate, for example, the listing agreements, if you decide that you will not follow ICDR regulations, then the consequences are very very clear. Sebi is serious about public shareholding. Sebi is willing to consider any practical suggestions pertaining to this."
He also noted that there has been no spurt in delisting of companies.
"Sebi received lot of requests and suggestions from industry, experts to make delisting easier but unfortunately we cannot agree to those suggestions," he said.