Centre has extended the deadline for central public sector enterprises (CPSEs) and public sector financial institutions to adhere to the minimum public shareholding (MPS) norm until August 2026.
The move to grant an exemption is in the public interest allowing CPSEs, public sector banks and financial institutions until August 1, 2026, to increase their public shareholding to at least 25%, a Finance Ministry memorandum said.
A notification issued by the ministry’s Department of Economic Affairs read, “In exercise of power granted under sub-rule (6) of Rule 19A of Securities Contract ( Regulation) Rules 1957, the central government hereby decides, in the public interest, that every listed public sector company, as defined in the SCRR, 1957, which has public shareholding below twenty five per cent within the timeline stipulated in Rule 19A of SCRR, 1957, shall get exemption up to August 1, 2026 to increase its public shareholding to at least twenty five per cent.”
“The Securities and Exchange Board of India [Sebi] is requested to take further necessary action and bring this to the notice of the stock exchanges concerned,” it further said.
Which are the public sector lenders?
As per the reports, five public sector lenders including Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Central Bank of India and Punjab and Sind Bank plan to reduce government stake to less than 75% to comply with Sebi’s MPS norm.
Out of 12 public sector banks (PSBs), seven are compliant with the MPS norm as of March 31, 2024.
These include State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Indian Bank, Union Bank of India and Bank of India.
