On 7 April 2026, IND SEBI relaxed minimum public shareholding requirements.
- IND SEBI granted one-time relaxation from applicability of penal provisions under the SEBI (listing obligations and disclosure requirements) regulations, 2015 for minimum public shareholding (MPS) requirements.
- Follows representations from an industry body highlighting difficulties faced by listed entities due to capital market volatility arising from ongoing tensions in Middle East.
Relaxed Penal Provisions
- No penal action should be taken against listed entities whose due date for compliance with MPS requirements falls during Apr. 1, 2026 and Sep. 30, 2026.
- Penal actions against listed entities for non-compliance with MPS requirements during the period from Apr. 1, 2026, may be withdrawn.
- The stock exchanges are advised to bring the relevant provisions to the notice of all the listed entities and revise bye-laws, etc., if required, for the implementation of the terms of the published circular.
Effectiveness
- The circular has immediate effect, i.e., Apr. 7, 2026.
