SEBI board suggests tweaking float norms to ease listing of big firms

By Swet Sarika

  • 18 Feb 2021
Credit: Reuters

The board of capital markets regulator yesterday recommended tweaks to public float norms for big firms having a post-issue market value of over Rs 1 lakh crore.

As per the recommendations, such companies should have a minimum public float of Rs 10,000 crore plus five per cent float of the incremental amount over Rs 1 lakh crore.

This suggestion is aimed at easing listing for big firms. Moreover, they shall be required to achieve at least 10% public shareholding in two years and at least 25% float within five years from the date of listing, the new suggestions said.

As of now, norms say all companies over Rs 4,000 crore should have a minimum 10% float.

The board of Securities and Exchange Board of India (SEBI) also approved an amendment to rules in order to recognise the post-graduate programme in securities market – one year and above – offered by NISM as eligible qualification for portfolio managers, investment advisers and research analysts.