Minimum shareholding norms deadline extended for PSUs

Govt extends deadline to 2020 for listed PSUs

There are more than 20 listed PSU firms that are required to meet the 25% norm that Securities and Exchange Board of India (Sebi) has mandated in order to promote wider investor base in the listed state-run companies. Photo for representation.

Ahead of the August 21 deadline, the government Thursday extended by two years the deadline for the listed public sector companies to meet the minimum public shareholding norm of 25%.

The new deadline is  August 2020. The Centre issued a notification to giving effect to the extension. 

The move is expected to give ample time for state-owned companies to go under the hammer. There are more than 20 listed PSU firms that are required to meet the 25% norm that Securities and Exchange Board of India (Sebi) has mandated in order to promote wider investor base in the listed state-run companies.

Among major PSU firms which are still short of the 25% public shareholding norms include Coal India, Hindustan Aeronautics, General Insurance Corp of India and Housing and Urban Development Corp (HUDCO).

The Sebi board had in June 2014 asked listed companies to offer at least 25 per cent of their equity to non-promoter shareholders.

Accordingly, the rules were notified for PSUs to achieve the minimum 25 per cent public shareholding by August 21, 2017, later extended by a year.

In the current fiscal the government aims to garner Rs 80,000 crore through PSU disinvestment, against Rs 1 lakh crore collected last fiscal.

List of PSUs that need to meet 25% public shareholding
Coal India Ltd                           
Hindustan Aeronautics Ltd                
General Insurance Corp of India Ltd      
KIOCL Ltd                                 
Housing & Urban Development Corp Ltd     
SJVN Ltd                                  
ITI Ltd                                   
Bharat Dynamics Ltd                      
MMTC Ltd                                 
RITES Ltd                                                                 
India Tourism Development Corp Ltd       
Fertilizers & Chemicals Travancore Ltd   
Andrew Yule & Co Ltd                     
State Trading Corp of India Ltd          
Hindustan Photo Films Mfg Co Ltd         
Scooters India Ltd                       
Hindustan Copper Ltd                     
Madras Fertilisers Ltd 

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Minimum shareholding norms deadline extended for PSUs

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