Daily News Analysis

Minimum Public Shareholding (MPS)

stylish_lining

  • SEBI has recently proposed more flexibility in the rules around Minimum Public Shareholding (MPS) and Minimum Public Offer (MPO) for companies looking to get listed. The aim is to simplify the fundraising process for issuers in India, encouraging easier access to capital markets.

What is Minimum Public Shareholding (MPS)?

  • MPS is a SEBI regulatory requirement under the Securities Contracts (Regulation) Rules, 1957 and the Listing Obligations and Disclosure Requirements (LODR).

  • It requires at least 25% of a listed company’s equity shares to be held by the public (non-promoters).

  • If promoters hold more than 75%, they must reduce their holding to meet this threshold.

  • Promoters can do this by:

    • Placing shares with institutional investors

    • Issuing rights shares to the public, thereby diluting their stake

Objectives of MPS Rule

  • Improve market liquidity

  • Promote fair price discovery

  • Ensure broader participation and strengthen corporate governance

Compliance Deadlines

  • Newly listed companies must comply within 3 years of listing.

  • Companies with a market cap over ₹1 trillion get 5 years to meet the 25% MPS.

  • If public shareholding falls below 25%, companies have 12 months to restore it.

Why This Matters

  • SEBI’s push to make these rules more flexible is aimed at easing capital raising while maintaining market integrity.

  • It helps companies grow by making compliance more manageable.


 

Green Hydrogen

Green hydrogen is hydrogen produced via electrolysis powered by renewable energy sources (solar, wind, hydro), splitting water (H₂O) into hydrogen (H₂) and oxygen (O₂). Alterna
Share It

Online Gaming Act, 2025

Why the Act was Passed: Banning Online Money Games: The Act effectively bans online games involving real money stakes (often resembling gambling), which have been linked to addiction an
Share It

Bonded Labour in India

The recent case flagged by the Haryana Human Rights Commission, involving a 14-year-old allegedly held as bonded labour and abandoned after a serious injury, underscores the persistent issue of bo
Share It

Gorumara National Park and Greater One-Horned Rhino

Increase in Rhino Population The population of one-horned rhinos in Gorumara National Park (Jalpaiguri, West Bengal) has increased due to the recent birth of two rhino calves. Thi
Share It

Election Commission of India (ECI)

The Election Commission of India (ECI) has been proactive in modernizing and strengthening the electoral process. Key Reforms Undertaken by the Election Commission of India (ECI) to Strengthen
Share It

Standing Committee on Finance

The Standing Committee on Finance (SCoF) has highlighted the urgent need for a national action plan to promote balanced industrial growth across India. This initiative aims to address regional dis
Share It

Carbon Emissions Trading

Context: The 2015 Paris Agreement on climate change includes Article 6, which sets the framework for international carbon markets—allowing countries to trade emissions reductions.
Share It

One Hundred and Thirtieth Amendment Bill, 2025

What is the Bill about? The Bill aims to remove the Prime Minister, Chief Minister, or any Minister (central/state/UT governments) if they are held in custody for 30 consecutive days for
Share It

Vaquita on the Verge of Extinction

A recent report by the North American Environmental Commission (CEC) has criticized Mexico for failing to protect the vaquita, one of the world’s rarest marine mammals. Alarmin
Share It

World Senior Citizen Day

Date: Every year on 21st August Purpose: World Senior Citizen Day is dedicated to recognizing and honoring the valuable contributions of senior citizens to society. It aims to raise global a
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS