New Methods of Offering

Government of India, vide notifications dated June 4, 2010 and August 9, 2010 has amended Rule 19 2(b) of Securities Contracts (Regulation) Rules, 1957 (SCRR) and introduced rule 19(A).

The amended rules require the listed companies to achieve (for already listed companies and companies listing after the amendment) and maintain minimum public shareholding at 25% by June 2013.

Two new methods viz. IPP (Institutional Placement Programme) and OFS (Offer for Sale of Shares by Promoters through Stock Exchange mechanism) have thus been introduced through which companies can increase their public shareholding.