New Delhi : Sebi chairman U K Sinha said the market regulator is willing to come up with fresh measures to ensure that listed companies comply with minimum public shareholding norms.
“If there is a demand (from corporates) and we feel the demand is genuine, then we are ready to come out with more avenues (to meet minimum shareholding norms),” Sinha told reporters on the sidelines of a NSE’s function to launch its SME platform. “If any fresh measures are required, we will not hesitate to take them. At the same time, companies that are not compliant with the minimum shareholding norms should make serious plans about them,” he noted.
Sebi has directed promoters of all listed private sector companies to ensure they comply with minimum public holding of 25 % by June 2013.
Last month, the market regulator allowed promoters to use rights and bonus issue of shares for dilution of their stake to meet minimum public holding norms.
Besides, promoters can dilute their holdings through newly introduced methods like IPP (Institutional Placement Programme) and Offer for Sale (OFS), as also traditional routes like Follow-on Public Offer (FPO).
Sinha also said that Securities Transaction Tax should be used in such a way that it incentivises people to make investments for the long term rather than reap short term benefits. Noting that STT is the prerogative of the government, Sinha said it is not something where the market regulator can take a call.
“Sebi’s view has been that in securities market, the tax rate is rather high,” he noted. According to him, taxes should be across various segments of various markets rather than only in the securities market. NSE Managing Director and CEO Ravi Narain too echoed similar views.