The Ministry of Finance on 31st July 2020 has published the Securities Contracts (Regulation) (Second Amendment) Rules, 2020.
The Amendment is brought under Rule 19A of the Securities Contracts (Regulation) Rules, 1957 which provides for maintenance of minimum public shareholding and its attainment within a specified period.
Every listed company (other than public sector company) shall maintain public shareholding of at least 25%, Provided that any listed company which has public shareholding below 25%, on the commencement of the Securities Contracts (Regulation) (Amendment) Rules, 2020, shall increase its public shareholding to at least 25%, within a period of three years from the date of such commencement, in the manner specified by the Securities and Exchange Board of India.
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