Under to SEBI Updates, the Securities and Exchange Board of India (SEBI) on May 14, 2020 has relaxed the stipulations with respect to Minimum Public Shareholding (MPS) non-compliant listed entities, their promoters and directors, including levy of fines, freeze of promoter holding etc. SEBI vide its Circular No. CFD/CMD/CIR/P/2017/115 dated October 10, 2017 had laid down the procedure of non-compliance with the MPS requirements. SEBI had received representations from listed entities and industry bodies to grant relaxation from the applicability of the October 10, 2017 circular.
Therefore, it is decided to give relaxations for listed entities for whom the deadline falls between the period from March 1, 2020 to August 31, 2020. The Stock Exchanges are advised not to take any penal action against such entities in case of non-compliance during the said period. The penal actions, if any, initiated by Stock Exchanges from March 01, 2020 till date for non-compliance of MPS requirements by such listed entities may be withdrawn.
This Circular shall come into force with immediate effect.
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