SEBI amends public shareholding norms

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SEBI amends public shareholding norms
Market regulator the Securities and Exchange Board of India (SEBI) on Wednesday amended to allow rights and bonus issue to public shareholders, for dilution of their stake to meet minimum public holding norms.

SEBI, further said that entities desirous of seeking any relaxation from the available methods may approach. Such requests would be considered by SEBI based on merit.

"Rights Issues to public shareholders, with promoters/promoter group shareholders forgoing their rights entitlement. Bonus Issues to public shareholders, with promoters/promoter group shareholders forgoing their bonus entitlement", SEBI said in the circular.

SEBI has asked the promoters of all private sector firms to reduce their stake so that the company has a minimum public holding of 25% by June, 2013. For the public sector companies, the promoters have been asked to trim their holding to an extent that such entities have a minimum public holding of 10% by August, 2013.

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