SEBI amended its rules to allow promoters to use rights and bonus issue of shares for dilution of their stake to meet minimum public holding norms. Market regulator also said it would consider any further relaxation in this matter on case by case basis.
Following Method has been allowed to facilitate listed entities to comply with the minimum public shareholding requirements within the time specified in Securities Contracts (Regulation) Rules, 1957:-
a. Rights Issues to public shareholders, with promoters/promoter group shareholders forgoing their rights entitlement.
b. Bonus Issues to public shareholders, with promoters/promoter group shareholders forgoing their bonus entitlement
a. any other method as may be approved by SEBI, on a case to case basis
Hope this will help the Promoters of the Companies who are still holding > 75% shareholding in the Companies owned by them .
SEBI has set a target of 30th June 2013 to comply the rule
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