| Data Source: Business Standard |
In 2010, SEBI had directed all listed companies to have a minimum public shareholding of 25%. The deadline for all private companies ends on June 03, 2013. As per an article in Business Standard, more than 100 companies are yet to comply with the shareholding guideline. Put together, these companies are required to sell shares worth Rs 170 bn. The chart of the day shows the companies that are required to offload the most in value terms.
It seems the companies want the deadline to be extended further owing to the poor market conditions. They are of the view that the markets would not be able to absorb share sales of such a magnitude in just a month's time. However, the market regulator has not relaxed its stand on the matter as it believes enough time has already been given to the non-compliant companies. It is worth noting that about 40 companies have lowered their promoter holdings through offer for sale or the institutional placement programme since last year.
It seems the companies want the deadline to be extended further owing to the poor market conditions. They are of the view that the markets would not be able to absorb share sales of such a magnitude in just a month's time. However, the market regulator has not relaxed its stand on the matter as it believes enough time has already been given to the non-compliant companies. It is worth noting that about 40 companies have lowered their promoter holdings through offer for sale or the institutional placement programme since last year.
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