25% public float or face action, SEBI warns cos

Private listed companies that have not yet met the minimum public shareholding norm of 25% would need to do so within June 2013, or face potential penal action.

“Stock exchanges shall carefully monitor adherence and take steps to issue advisories to shareholders of non-compliant companies about potential penal actions, so that investors have adequate time to safeguard their interests,” a Sebi circular said. Experts believe the regulator is unlikely to allow any further extension.

Sebi in its board meet also relaxed sectoral exposure norms for debt mutual fund schemes to invest an additional 10% in securities issued by housing finance companies, in addition to the 30% prescribed limit for investing in papers of non banking financial companies.

Sebi in its board meet decided to prepare guidelines for the government's consideration so that different routes for foreign portfolio investments are harmonised and uniform guidelines laid for various categories of investors such as foreign institutional investors, foreign venture capital investors, NRIs and qualified foreign investors, etc.