Finance Ministry restructured public shareholding norms for listed companies. The framework now includes six capital categories instead of three, ranging from under 1,600 crore to over 5 lakh crore. This graded approach aims to balance market liquidity with practical realities of large capital raises. Companies will have between three to ten years to achieve the mandatory 25 percent minimum public shareholding requirement. The revision also reduces minimum equity or convertible debenture offerings from 5 percent to 2.5 percent. Experts view this restructuring as a move to make listing requirements more proportionate for mega-cap companies seeking to list in India while maintaining regulatory standards.
