June 4, 2010 8:45 PM

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Govt. makes 25 % public share holding mandatory for listed companies

The government today made it mandatory for listed companies to raise public shareholding to 25 per cent, with at least five per cent dilution a year, a move that would attract more investors and check price share manipulation. In keeping with the budgetary promise, the Finance Ministry amended the relevant regulations to the effect that the minimum threshold level of public holding will be 25 per cent for all listed companies. The new rules were announced shortly after close of stock market. The decision on mandatory increase in public exposure of a company to 25 per cent had been hanging fire for more than a year due to differences the market regulator SEBI had with the Finance Ministry.

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