According to Financial Services Secretary Vivek Joshi, five public sector lenders - including plan to reduce the government's participation to less than 75% in order to adhere to Sebi's minimum public shareholding (MPS) requirements.
As of March 31, 2023, four of the twelve public sector banks (PSBs) were in compliance with MPS standards. "Three more PSBs have met the minimum 25% public float requirement during the current fiscal year as part of a continuing endeavor. To comply with MPS standards, the remaining five PSBs have created action plans," he stated.
Public sector banks have until August 2024 to comply with the condition set forth by the Securities and Exchange Board of India (Sebi).
For all listed firms, the Minimum Public Shareholding (MPS) standard requires a minimum of 25% public float.
Certain PSUs have been granted a complete exemption from MPS through August 2024.
State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Central Bank of India, Indian Overseas Bank, Canara Bank, Union Bank of India, Indian Bank, Bank of Maharashtra, Indian Bank, and UCO Bank are the twelve PSBs.
Within three years of listing, corporations must have a minimum of twenty-five percent of their shares held by the public.
