New Delhi, December 7: Markets regulator Sebi on Monday extended till December 24 the deadline for submission of public comments on review of the minimum public offer requirement for large issuers. In November, Sebi had put up a consultation paper on review of requirement of minimum public offer for large issuers in terms of Securities Contracts (Regulation) Rules.

It proposed to reduce the minimum offer size in an initial share sale, whereby companies with a post-issue capital of above Rs 10,000 crore would be required to offer at least 5 per cent stake in IPO. At present, all companies with a post-issue capital above Rs 4,000 crore are compulsorily required to dilute at least 10 per cent shareholding in the initial public offering (IPO). Also Read | Xiaomi Mi 55-Inch QLED Smart TV to Be Launched in India on December 16, 2020: Report.

It had said there could be a scenario where large issuers may not be compliant with 10 per cent minimum public shareholding (MPS) at the time of listing. Accordingly, the regulator recommended that MPS of 10 per cent should be achieved in 18 months by such issuers and 25 per cent within three years from the date of listing.

Further, the regulator suggested providing additional time to comply with MPS of 25 per cent in case of very large issuers with post-issue market capitalisation of Rs 1 lakh crore and above.

For such issuers, it has been proposed that minimum of 10 per cent should be achieved in two years and 25 per cent within five years from the date of listing.

Currently, companies need to achieve MPS of 25 per cent within three years of listing. Bharat Bandh Tomorrow: Section 144 Imposed Across Gujarat Ahead of Nationwide Shutdown Called by Farmers.

It had sought comments on the proposals in a prescribed format by December 7, 2020. However, "it has been decided to extend the timeline for seeking public comments to December 24, 2020," the regulator said on Monday.

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