also given 3 years in the same year to increase their public shareholding to at least 10 per cent.
The deadline for 25 per cent minimum public shareholding requirement for private companies ended in June 2013, while the same for the government to reduce its stake to at least 90 per cent in PSUs was August 2013. When the norms were proposed in 2010, more than 200 companies needed to comply.
Incidentally, Sebi had first proposed in June 2010 that all listed companies — including PSUs — would need to have a minimum public shareholding of 25 per cent.
However, in August 2010, the norms were amended to revise public sector companies' minimum public shareholding norms to 10 per cent (from 25 per cent) within three years.
"In 2010, when it was done, at that time government had a position that in one particular PSU if they float 25 per cent in one go, it will be a problem but now the government has to revisit it," Sinha had said last week.
"The government has to do...the rules are notified by the government," he had added.
These directions issued by Sebi against these firms included freezing of voting rights and corporate benefits such as dividend, rights and bonus shares among others.
All PSUs eventually managed to meet the 10 per cent minimum public holding norms, although the regulator had allowed the government to transfer its holding in excess of 90 per cent in sick PSUs to Special National Investment Fund.