% in the shares

This query is : Resolved

RItu (Querist)
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14 December 2007 Sir, i would wish to know as to how much a promoter, director can hold shares i.e. upto what percentage.and is there any difference with regards the % in listed and unlisted co

for instance as per sebi derictive in listed company the hsare holidng of the public cannot come down below 25% of the shares issued, so can the rest 75% be taken up by promoter/director,friend, relatives and associates.

is it that the promoter/director can hold only 55% of the total capital and in any given year the percentage cannot excced 5% subject to a limit of 55% which could be thru prefential allotment as well

R.V.RAO

R.V.RAO (Expert)
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14 December 2007 PARA TWO OF YOUR QUERY IS ANSWRED IN AFFIRMATIVE.
AS PER SEBI GUIDELINES WHERE 25 % MIN. IS TO BE HELD BY PUBLIC( AS PER % OF SHAREHOLDING AT THE TIME OF PUBLIC ISSUE) , THE 75% BALANCE CAN BE HELD BY PROMOTERS.THIS IS FOR LISTED COMPANIES.
EVEN IN LISTED COMPANIES 25% FOR PUBLIC IS NOT A RULE. AT THE TIME OF PUBLIC ISSUE THE PUBLIC HOLDING LESS THAN 25% WAS ALSO PERPERMITTED EARLIER. FOR SUCH LISTED COMPANIES ,THERE IS A TIME LIMIT WHEN THEY SHOULD BRING UP THE PUBLIC HOLDING TO 25%.
THERE IS ALSO AN EXCEPTION PROVIDED BY SEBI FROM THESE RESTRICTIONS TO CERTAIN CATEGORY OF COMPANIES LIKE SICK/BIFR COMPANIES, GOVT. COPAMNIES ETC...
FOR MORE DETAILS ON THESE ,PL. VISIT
www.sebi.gov.in
FOR UNLISTED COMPANIES NO SUCH GUIDELINES APPLY.NO RESTRICTIONS ON THEIR SHARE PATTERN%
R.V.RAO

R.V.RAO

R.V.RAO (Expert)
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15 March 2008 sebi is now proposing to EXclude in the 25% PUBLIS QUOTA CATEGORIES LIKE FII,FI AND MUTUAL FUNDS.
THIS MEANS 25% QUOTA SHOULD ONLY BE HELD EXCLUSIVELY BY GENERAL PUBLIC.
LET US SEE IF THIS PROPOSAL TRANSLATES INTO APPROVAL. IF THAT BE, ALL BLUE CHIP COMPANIES HAVE TO DEVOLVE PROMOTER HOLDINGS IN FAVOR OF PUBLIC TO THE EXTENT OF COMPLYING WITH THE PROPOSED PATTERN.
THIS ITEM OF NEWS APPEARED IN NEWS PAPERS IN LAST WEEK OF FEB/ FIRST WEEK OF MAR 2008 .
R.V.RAO

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