The Indian government has announced that it will exempt public sector entities from the Minimum Public Shareholding (MPS) requirement, which mandates that all listed companies must have at least a 25% public float.
The exemption will apply regardless of the government’s direct or indirect holding in these entities, and will be in effect for a “specified period,” even if there is a change in ownership or control.
The exemption will apply to “any listed entity in which the Central Government or State Government or public sector company, either individually or in any combination with other, hold directly or indirectly, majority of the shares or voting rights or control of such listed entity.”
As a result of this exemption, IDBI Bank will be exempt from the MPS requirement, even after the partial stake sale by LIC and the government.