GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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5 %
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15 %
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25 %
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35 %
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Detailed explanation-1: -2.3. Rule 19A(5) of the SCRR mandates that in cases where the public shareholding falls below 10% due to CIRP, such listed companies are required to bring public shareholding to at least 10% within a period of 18 months and to 25% within 3 years from the date of such fall. 2.4.
Detailed explanation-2: -According to the market regulator SEBI norms, a company is required to have a minimum public shareholding of 25 per cent within one year of the merger/acquisition of a company or three years after listing.
Detailed explanation-3: -The government has exempted public sector entities from the Minimum Public Shareholding (MPS) norm which mandates at least 25 per cent public float for all listed companies. The exemption would apply on these entities regardless of the government’s direct or indirect holding.