MoF restructured norms for Minimum Public Shareholdings
In March 2026, the Department of Economic Affairs (DEA) under the Ministry of Finance (MoF) revised the rules related to minimum public shareholding (MPS) for large companies planning to list on stock exchanges.
In March 2026, the Department of Economic Affairs (DEA) under the Ministry of Finance (MoF) revised the rules related to minimum public shareholding (MPS) for large companies planning to list on stock exchanges.
- The amendment introduced a graded framework, allowing companies to offer a smaller proportion of shares to the public at the time of their Initial Public Offering (IPO).
Key Highlights
Listing Reforms: The amendment to the Securities Contracts (Regulation) Rules, 1957 reduces the MPS required at the time of listing from 5% to 2.5%.
Categories Expanded: Earlier, the norms for achieving the 25% MPS were based on 3 categories of post-issue capital: Rs 1,600 crore (Cr), Rs 1,600 Cr to Rs 4,000 Cr and Rs 4,000 Cr to Rs 1 lakh Cr.
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- Now, the framework has been expanded to six categories:
- Up to Rs 1,600 Cr,
- Rs 1,600 Cr to Rs 4,000 Cr,
- Rs 4,000 Cr to Rs 50,000 Cr,
- Rs 50,000 Cr to Rs 1 lakh Cr,
- Rs 1 lakh Cr to Rs 5 lakh Cr and
- More than Rs 5 lakh Cr.
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