Government of India is now Planning for a uniform Public Holding Threshold for all Companies. So What it means to you?
Well, it means that, if you want to take your Business to the public in the future than you have to give minimum 25% ownership/Equity to the Public. Right Now the Rule is 10-25% means if you want to go to public than you can sell just 10% of your Business to the public and make a listing of your Business on Stock Exchanges (NSE & BSE) of India.
But the Indian Government is worried about current law. Because according to the current law, many state owned companies and private sector companies have just 10% Equity in public and Promoters of the Company own most of the Company.
Government is planning to implement a uniform public shareholding threshold (25%) across all the companies. Firms that till now did not conform to the 25% public shareholding rule, include select state owned companies and others in sectors such as IT, Infrastructure, Entertainment, Media and Telecommunication.
Non-Promoter Holding in these Companies vary between 10% and 25%.
Once the decision is taken, there will be only one rule for all companies and they will have to gradually increase it to an annual figure.
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