Government Extends Deadline for Public Shareholding Norms in CPSEs

The government has prolonged the deadline for central public sector enterprises (CPSEs) and public sector financial institutions to comply with minimum public shareholding norms until August 2026. The extension aims to give these entities additional time to meet the requirement of at least 25% public shareholding.

The government has extended the deadline for meeting minimum public shareholding norms for central public sector enterprises and public sector financial institutions till August 2026.

In public interest, the central government has provided an exemption until August 1, 2026, to increase public shareholding to at least 25% in CPSEs and public sector banks and financial institutions, according to an office memorandum issued by the Ministry of Finance.

Central Public Sector Enterprises (CPSEs) with public shareholding below 25% and unable to meet the timeline stipulated in Rule 19A of Securities Contracts (Regulation) Rules 1957 will now have an additional two years.

Originally, the two-year exemption was to end on August 1, 2024. The Securities and Exchange Board of India (SEBI) is requested to take further necessary action and inform the concerned stock exchanges.

Currently, five out of 12 public sector banks (PSBs) are yet to comply with the minimum public shareholding (MPS) norms, with government holding exceeding 75%. The banks include Punjab & Sind Bank at 98.25%, Indian Overseas Bank at 96.38%, UCO Bank at 95.39%, Central Bank of India at 93.08%, and Bank of Maharashtra at 86.46%.

(With inputs from agencies.)