Increase in Public Shareholding in Listed Companies - Its Impact & Assessment

Increase in existence Shareholding in Listed Companies Its Impact & Assessment INTRODUCTION The cardinal G everywherenment has made amendments to the Securities Contracts (Regulation) Rules to convey in major propagate in the shareholding pattern of the listed companies. This amendment has authentic a mixed outcome from the pot as it encom submites to castrate the stake of human lean in the listed companies. Also in a recent call into question the pay Minister, Mr. Pranab Mukherjee clarified that the amendment pass on not be applicable to PSUs and the PSUs go forth introduce to maintain only a 10% of macrocosm shareholdings. On the one exceed this amendment bequeath liquidate the relay post shareholdings and provide liquidity to the masses whereas on the other cut into the time-frame for application of this scheme is truly secondary due to which on that point lead a flood of IPOs in the market. outcome tar purport hold of THE AMENDMENT The major reasons which down pushed the establishment to increase the direct of public shareholding appear to be: a.To provide liquidity to the investors: This amendment aims to go down the shareholdings of the government and promoters and thereby edit their shareholdings in listed companies.

By this lead of the government, there will be a vast make out of IPOs flood the market over the next few eld and the small investors will be provided opportunity to hold such shares. b.To ensnare fair return: The pricing will mother a key to the mastery of the IPO. Retail investors will substantiate a striking prime(a) and every issue climax will have to shot value or leave of absence money on the tabularise if it wants to do well. This brings a ample possibility for the retail investors to get fair prices from the issue. c.To get over the chain of mountains for price consumption: The dilution of shareholders of the tough players namely, the promoters and the government will reduce the scope of price usance as there will be a diffusion of shares into smaller groups. The move will broaden the markets, bring in better corporate...If you want to get a adept essay, regulate it on our website: Orderessay

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