SEBI notifies every listed entities shall maintain public Shareholding with period of 3 years instead of 2 years

The Security and Exchange Board of India (SEBI) notified the Securities Contracts (Regulation) (Second Amendment) Rules, 2020.

The Board seeks to amend the Securities Contracts (Regulation) Rules, 1957.

In the Securities Contracts (Regulation) Rules, 1957, in rule 19A, in sub-rule (1), in the proviso, for the words “two years” the words “three years” shall be substituted.

This means that every listed public sector company which has public shareholding below 25% on the commencement of the Securities Contracts (Regulation) (Second Amendment) Rules, 2018, shall increase its public shareholding to at least 25%, within a period of 3 years from the date of such commencement, in the manner specified by the Securities and Exchange Board of India.