New Delhi: The government has exempted public sector units (PSUs) from the Minimum Public Shareholding (MPS) norms which mandates at least 25 percent public float for all listed companies. The exemption would apply on these entities regardless of the government's direct or indirect holding. The exemption from MPS norm will be valid for a "specified period" even if there is a change in ownership or control after the exemption is granted, a Gazette notification said.
The notification exempts "any listed entity in which the central government or state government or public sector company, either individually or in any combination with other, hold directly or indirectly, majority of the shares or voting rights or control of such listed entity, from any or all of the provisions of this rule."
The Securities Contracts (Regulation) Amendment Rules, 2022 was notified by the government on January 2. Following the notification, IDBI Bank will be exempted from MPS even after partial stake sale by LIC and the government.
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