Additional Options for Listed Entities to comply with the minimum public shareholding requirements

Before the Circular No. CIR/CFD/DIL/11/2012 dated 29th August, 2012 of SEBI, Listed entities desirous of achieving the minimum public shareholding had options in form of one of the following modes as provided in clause 40A of listing agreement:

1. Follow on Public Issue;
2. Offer for Sale;
3. E-Offer for Sale;
4. E-IPP

Now with a view to facilitate listed entities to comply with the minimum public shareholding requirements within the time specified in Securities Contracts (Regulation) Rules, 1957 i.e. JUNE - 2013, SEBI has provided following additional methods through above noted circular:-

1. Rights Issues to public shareholders, with promoters/ promoter group shareholders forgoing their rights entitlement.
2. Bonus Issues to public shareholders, with promoters/ promoter group shareholders forgoing their bonus entitlement.

In case any listed entity is desirous of achieving the minimum public shareholding requirement through other means, they will have to approach SEBI with appropriate details. Also, listed entities desirous of seeking any relaxation from the available methods may approach SEBI with appropriate details. Such requests would be considered by SEBI based on merit.