Home / Market / Stock-market-news /  All PSUs meet Sebi’s public shareholding norms

Mumbai: All state-owned companies have met the Indian capital market regulator’s deadline for 10% minimum public shareholding in public sector undertakings (PSUs) by 8 August.

The amount raised by the government in the companies by selling stock in the companies it owns to meet the minimum public shareholding norm since 1 April 2011 has been 2,510 crore; 2,086 crore of this was raised through the offer for sale (OFS) route, Delhi-based capital market data aggregator Prime Database said in a statement.

The deadline for the private sector companies to meet the minimum 25% public holding expired on 3 June. The 105 companies that did not conform to the norms of Securities and Exchange Board of India (Sebi) were all penalized. According to Prime Database, 64 private sector companies had already diluted their stake before the deadline of 3 June.

Sebi designed OFS and IPP instruments for promoters to divest their holdings to meet the public shareholding norm. These also serve as tools for the divestment of government holdings to meet the divestment target.

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