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Saturday, 2 February 2008

FinMin proposes 25% public holding floor


The proposed hike will apply to all companies - public as well as private.

To introduce more transparency and public participation in the stock market, the finance ministry has proposed raising the public shareholding limit for listed companies to at least 25% from the existing 10%.

The ministry has invited public responses to its discussion paper on this subject by February 28.

A finance ministry official said the proposed amendments to the Securities Contracts (Regulation) Rules, 1957, are likely to come into effect sometime early next financial year.

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