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Market Regulator SEBI will in the next 3-4 days issue regulations for its much awaited institutional placement programme (IPP), its Chairman, Mr U.K. Sinha has said.
The IPP is an additional method that was introduced early this month to enable corporates comply with the minimum public shareholding norm under Securities Contracts Regulation rules.
Under IPP, compliance could be achieved either by way of fresh issue of capital or dilution by promoters through an offer for sale.
Using this method, public shareholding can be increased by 10 per cent or such lesser percentage as is required to comply with the minimum public shareholding requirement.
The disinvestment department is eagerly awaiting the SEBI regulations for both IPP and also for offer for sale of shares through stock exchanges.
Once the regulations are out, the Centre will be able to firm up its plans for shedding stake in certain public sector entities where the public shareholding is less than 10 per cent or where such holding is not in compliance with minimum public shareholding requirement, sources said.
The Centre's disinvestment target for current fiscal was Rs 40,000 crore. It has so far mopped up only Rs 1,145 crore.
While the Centre is unlikely to meet the target, there are indications that it would go in for IPP to mop up a sizeable amount before end of current fiscal.
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