The central government has amended the rules governing minimum public shareholding (MPS), introducing a graded framework that allows large companies to offer a smaller portion of shares to the public at the time of their initial public offering (IPO). The objective is to make it easier for very large companies to go public while ensuring that public shareholding gradually rises to the standard 25 per cent level. For companies with post-issue capital exceeding ₹5 lakh crore, the minimum public float requirement has been reduced further. The amendment also sets out timelines for large companies to gradually increase their public shareholding. However, recognised stock exchanges may impose fines or penalties for any past non-compliance with public shareholding norms.

Source: The Telegraph March 14, 2026 23:39 UTC