Jio, NSE IPOs soon? India eases minimum public shareholding rule

In a notification, the Ministry of Finance's Department of Economic Affairs said that it has amended the Securities Contracts (Regulation) Rules, 1957. The new rules will be called the Securities Contracts (Regulation) Amendment Rules, 2026.

The minimum offer and allotment to the public in terms of an offer document will be

• At least 25% of each class or kind of equity shares or debentures convertible into equity shares, if the company's post-issue capital is up to ₹1,600 crore.
• Under the amended rules, the company with an offer size more than ₹1,600 crore and less than ₹4,000 crore, the issue will be linked to a minimum value instead of a fixed percentage. These firms will offer shares equivalent to a value at least ₹400 crore to the public.
• At least 10% of each class or kind of equity shares or debentures convertible into equity shares, if the post-issue capital calculated at the offer price is above ₹4,000 crore and less than ₹50,000 crore. Provided that the company "shall increase its public shareholding to at least twenty-five per cent within a period of three years from the date of listing of the securities, in the manner specified by the Securities and Exchange Board of India," the government said.
• Companies with post-issue capital of above ₹50,000 crore and ₹1 lakh crore will be required to offer at least the public offer equivalent to the value of ₹1,000 crore and at least 8% of each such class. From the date of listing, the firms will have up to five years to increase their public shareholding to 25%.
• The large companies with post-issue capital of above ₹1 lakh crore till ₹5 lakh crore can offer a minimum equivalent to a minimum of ₹6,250 crore and at least 2.75% of each such class.
• Companies will market capitalisation of more than ₹5 lakh crore can offer equivalent to a minimum of ₹15,000 crore and maintain at least 1% of each such class. Provided that where "the public shareholding of the company at the time of listing is less than 15%, the company shall increase its public shareholding to at least 15% within a period of five years and to at least 25% within a period of ten years, from the date of listing of its securities, in the manner as may be specified by the Securities and Exchange Board of India," the notification said, adding that if the public shareholding is 15% or higher, the firm can increase it to 25% in five years.
• Without regard to size, at least 2.5% of each such class or kind of shares or debentures convertible into equity shares issued by the firm should be offered to the public, the government said.

Non-compliance with the public shareholding rules would attract a fine or penalty by the recognised stock exchanges.