PSUs may soon have to give up one of the listing norm exemptions they enjoy: That of remaining listed even if public shareholding is less than 10%. Following an instruction from the finance ministry, Sebi, the stock market regulator, has written to the government to take steps to raise public shareholding in PSUs to at least 10% level.
Data analysed by TOI showed that there were at least 12 PSUs in which the President of India, as the promoter of the company, holds over 90% of the total equity. The list included NMDC, MMTC, Neyveli Lignite, Hindustan Copper and others. In Hindustan Copper, with government holding 99.6%, public shareholding is less than 1%. Similarly in MMTC, public shareholding is just about 1%. In KIOCL, government holds 99% but no trading has taken place in the scrip in the last three years. Under the current listing norms, private sector companies should have at least 10% public shareholding. However, PSUs are exempt from this statutory minimum public shareholding requirement. In Budget speech, FM Pranab Mukherjee had said that the public shareholding norms should be uniform for public and private sector
