The future of such companies can be decided in the middle of this month, in which the government’s share is 90 percent or more. SEBI board meeting is scheduled to be held on 18 June. In this, the proposal to exemption these government companies from the current rules of delisting can be approved. People associated with this case said that in the meeting of SEBI board, 90 percent or more government -stake companies may get exemption from delisting rules. SEBI issued a discussion paper on this 6 May. It said that 90 percent or more government stake PSUs can get their own delist without following the minimum shareholding rules.
For more information about this, the email sent to SEBI was not replied. SEBI had issued a discussion paper in this regard last month. The opinion of the people was sought on this 26. After considering people’s feedback, SEBI will take a final decision in this regard. Government companies (PSUs) have been far behind in rearing minimum shareholding rules. According to SEBI rule, the promoter share in the company should not exceed 75 per cent on the completion of three years of listing. This means that if the promoter has more than 75 percent stake in a company at the time of listing, then it will have to be reduced to 75 percent within three years.
SEBI has several times given PSU companies additional time to reduce the government’s share to 75 per cent. However, even today there are more than 20 PSUs in which the government has more than 75 percent stake. More than 10 years have passed since some of these companies listed. This is an indication that PSU has not been much interested in bringing the government’s stake to 75 per cent.
The discussion paper of SEBI proposes to exempt those government companies from delisting rules, in which the government holds 90 per cent or more. According to the data of the Prime database, there are more than 10 such companies in which the government has more than the fixed limit. These include Kiocl, IDBI Bank, Indian Overseas Bank, HMT, Punjab & Sind Bank, State Trading Corporation, UCO Bank, ITI and Fertilisers & FEMICALS TRAVANCORE.
Market participants say that if the rules of delisting are exempted, those government companies can be delivered to those who have less liquidity in shares. Experts also say that the PSU shares which have good liquidity will not provide the government to the delivery. According to SEBI rules, approval of two-thirds of its shareholders is necessary to get a company delist.
