Finance Minister Nirmala Sitharaman has asked the Securities and Exchange Board of India (SEBI) to consider the proposal.
New Delhi: Finance Minister Nirmala Sitharaman has proposed a proposal in 2019-20 that many Indian companies may have to sell billions of dollars worth of shares. These include at least 100 Indian companies like Tata Consultancy Services (TCS), Wipro, Hindustan Unilever Ltd. The government has proposed to increase the minimum public shareholding from 25 to 35 percent. Sitharaman asked the Securities and Exchange Board of India (SEBI) to consider the proposal.
Due to this rule, there could be equity sales of about $ 57 billion (Rs 3.9 lakh crore). With this step, domestic units of multinational companies can go towards de-listing themselves as they are not dependent on local funding.
This new proposal means that at least 35 percent of the shares of a company should be held by the public. The rest may have a share of promoters. If this rule is made, companies like TCS, WIPRO, Avenue Supermarts and Coal India will have to sell a large number of shares.
72.05% of TCS’s shares are with promoters, while promoters in Wipro have 73.85% shares. According to the listing of the Bombay Stock Exchange, promoters share in 81% of Avenue Supermarts is 81%, while promoters of Coal India have 70.96 shares.
While presenting the central budget of 2019-20 in the Lok Sabha, Sitharaman said, “To list the social enterprises and voluntary organizations working to achieve the objectives of social welfare, the electronic fund raising platform in the regulatory framework of the SEBI – Social Stock I propose to take action to create an exchange so that they can invest in the form of units like Equity Loans or Mutual Funds. Ta can. ”
The Finance Minister said, “Investments in the treasury bills and securities issued by the retail investors are important, the efforts of the Reserve Bank should be strengthened with the institutional development using stock exchanges. For this purpose, RBI Depositories and SEBI Depositories Inter-related exchange is necessary, so that the Reserve Bank of India and Treasury Bills and Government Securities Among possible transfer. Government after the central bank and in consultation with the SEBI would take necessary action. ”
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