look news india
State-owned insurer Life Insurance Corporation of India (LIC) today announced that it has been granted three more years of approval by market regulator Securities Exchange Board of India (SEBI) to comply with the minimum public shareholding norms. The deadline for LIC to acquire 10 percent public stake is on or before May 16, 2027. Following the decision, LIC shares rose three per cent to an intraday high of Rs 962.
This report is a relief for investors. Experts said the move is likely to delay the delivery of a potential offer for sale (OFS) by the government to meet the minimum public shareholding (MPS) norms.
It is noteworthy that compliance with SEBI's rule of maintaining 25 percent public shareholding is mandatory for all listed companies. Of course, there is a three-year grace period for newly listed companies to meet this requirement. If the company has funds of more than Rs 1 lakh crore after the issue, then in such a situation the period for obtaining 25% MPS is fixed at five years.