Also Read: LIC gets GST demand and orders worth ₹183 crore for Telangana Capital markets regulator Securities and Exchange Board of India (SEBI) has granted a period of five years to large cap companies for achieving the MPS limit. However, media reports said earlier this year that the government is likely to extend the 25 per cent public float exemption for the life insurer much beyond five years.
“For issuers with a post-issue market capital exceeding ₹100,000 crore, the requirement of minimum public float will be reduced from 10 per cent of post-issue market capital to ₹10,000 crore plus 5 per cent of the incremental amount beyond ₹100,000 crore,'' said the market regulator. ‘’These issuers shall be required to achieve at least 10 per cent public shareholding in two years and at least 25 per cent public shareholding within five years from the date of listing," SEBI had said, while tweaking the rule in 2021.
Earlier this year, the government had announced that it can now exempt any listed public sector enterprise from the MPS norm, which mandates at least a 25 per cent public float for all listed entities. LIC, which debuted on the bourses on May 17, 2022, was originally required to meet the 25 per cent MPS rule by 2027.
However, the government has granted an extension of 10 years to India's largest life insurer for the same. On Thursday, shares of LIC settled 0.52 per cent higher at ₹764.55 apiece on the BSE.
Read more on livemint.com