Former Securities and Exchange Board of India (Sebi) chairman UK Sinha feels that the 2019 Union Budget proposal to hike minimum public shareholding in listed companies to 35 percent is a good move, but will take time to be implemented. The the former Sebi chairman also feels that the rules, if implemented, should apply to every listed company, irrespective of who their promoter is.
Sinha said: "If you ask me about 35 percent, my feeling is that it will take its own time and it should take its own time because 25 to 35 percent is a good move but it's a big jump. So we should provide reasonable time frame for doing that.
"The government should lead in this, the capital market rules should be agnostic to who is the main promoter or main shareholder, irrespective of that rules should apply equally to everybody only then it can be implemented."
First Published: IST