Market Regulator SEBI has proposed to make the listing rules in the stock market easier for big companies. This means that companies will be slightly relaxed to complete public offers and minimum public shareholders (MPS) rules.
What kind of change will make sebi
According to SEBI’s consultation paper, companies whose market capital ranges between ₹ 50,000 crore to ₹ 1 lakh crore, can now be allowed to sell 8% instead of selling 10% of their stock.
At the same time, the minimum public offer for companies ranging from ₹ 1 lakh crore to ₹ 5 lakh crore has been fixed ₹ 6,250 crore or post-Ishu share capital. At the same time, big companies (above ₹ 5 lakh crore) will have to pay at least ₹ 15,000 crore and 1% shares.
Why are the rules changing sebi
The purpose of this change is to help companies raise funds and make the listing process easier. This will give companies flexibility in selling shares to investors and there will not be much pressure in the market.
SEBI has made these rules in such a way that for both small and big companies, there is a balance of public offers and shareholding, so that the availability of shares in the market and the safety of investors.