By Mainak Mukherjee and Abhishek Bhatra
I. Introduction
SEBI’s Minimum Public Shareholding (MPS) norm mandates that all listed companies maintain a minimum 25% shareholding in the hands of the public, ie, non-promoters. The primary objective behind implementing this norm was to ensure transparency, public participation, and mitigate susceptibility to market manipulation. However, the MPS regime has unfortunately fallen short of achieving its intended objectives, giving rise to a range of challenges and setbacks. This article explores the multitude of issues plaguing the current regime while presenting comprehensive solutions to address these challenges.
II. What is the Minimum Public Shareholding norm?
