Regulator Sebi's board on Wednesday decided to relax the minimum public offer norms for large issuers by reducing certain requirements.
Changes have been approved in the Securities Contracts (Regulation) Rules, 1957 (SCRR), according to a release.
The minimum public offer requirement has been reduced from 10 per cent of post issue market capital to Rs 10,000 crore plus 5 per cent of the incremental amount beyond Rs 1 lakh crore. This is for issuers with post issue market capital exceeding Rs 1 lakh crore.
In addition, such issuers would be required to achieve at least 10 per cent public shareholding in two years and at least 25 per cent public shareholding within five years from the date of listing.
Presently, issuers with post issue market capital of at least Rs 4,000 crore or more, are required to offer to public at least 10 per cent of its post issue market capital and achieve a minimum public shareholding of at least 25 per cent within three years from the date of listing.
