Roadmap for public stake in listed cos by December

 
And once the framework is out, a slew of follow on public offers (FPOs) is expected to hit the market as about 180 companies have less than 25 per cent public holding.

“We have to amend Securities contracts (Regulation)Rules (SCRR). We have started the process...consultation with Sebi is going on,” official sources said. The process is expected to be complete by December 2009 bywhen, the government would be notifying the amendment in SCRR, the sources said.

Among the leading PSUs where promoter or government holding is well above 75 per cent are MMTC, NMDC, Hindustan Copper, Power Grid, NTPC, SAIL, Shipping Corporation, Neyveli Lignite. In the same league are some of the private companies like Wipro, DLF, Reliance Power, Mundra Port, TCS and IL&FS.

In this fiscal’s Budget speech Finance Minister Pranab Mukherjee had said, the average public float in Indian listed companies is less than 15 per cent.  Deep non-manipulable markets and diversified public shareholdings.

The rules provide for the requirements which have to be complied with by public companies for the purpose of getting their securities listed.