Minimum public shareholding (MPS)

    ESG & Governance

    The rule that listed companies must keep at least 25% of their shares with the public.

    The rule is in the Securities Contracts (Regulation) Rules. Companies that list with a lower public share get a set period to reach 25%, with longer timelines for very large companies. Promoters meet the rule by selling shares through offers for sale, placements or other routes. Promoter sales made to meet MPS are a compliance step, not necessarily a sign of lost confidence.

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