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At present, stock exchanges and depositories are mandated to take action against listed companies that don’t meet the minimum public shareholding (MPS) norms. They are also required to initiate action against the promoters and directors of such companies, including the levy of fines and a freeze on the promoter holding.
All listed companies have to maintain a minimum 25% public shareholding.
“After taking into consideration requests received from listed entities and industry bodies as well as considering the prevailing business and market conditions, it has been decided to grant relaxation... for listed entities for whom the deadline to comply with MPS requirements falls between the period from March 1, 2020, to August 31, 2020,” the Securties and Exchange Board of India said in a circular on Thursday.
The regulator asked the stock exchanges not to take any penal action against companies that are non- compliant during the period. Any penal action initiated against companies since March 1 for non-compliance should be withdrawn. The regulator said the circular would come into effect immediately.
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Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price