SEBI talks tough against PSUs that fail to meet public float norm
Eight state owned companies and banks – Hindustan Copper, ITDC, MMTC, National Fertilizers, Neyveli Lignite, Rashtriya Chemicals & Fertilisers, State Bank of Mysore and STC have met with the SEBI-prescribed minimum public holding benchmark of 10 per cent within the deadline of August 8, according to Prime Database.
Pranav Haldea, Director of Prime, note that Neyveli Lignite, under the pressure from the Tamil Nadu State Government, used IPP route with preferential allotment to its own State undertakings.
Recently the Cabinet Committee on Economic Affairs, the excess Government holding in 6 listed PSUs – Andrew Yule, HMT, Fertilizers & Chemicals Travancore, ITI, Hindustan Photo Films and Scooters India – would be transferred out of Government control to a proposed “Special National Investment Fund”.
Some 105 private sector companies were non-compliant with the 75 per cent public shareholding requirement on the 3rd June 2013 deadline, against whom SEBI had passed penal orders. According to Haldea, since then, 20 of these companies have complied with the requirement (through 13 offer for sale, 3 bonus issues, one IPP, one OFS & IPP, one OFS and bonus, and 1 rights).
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