THE DISCUSSION PAPER ON PUBLIC HOLDINGS PROPOSED

It is proposed to amend the Securities Contracts (Regulation) Rules, 1957 (SCRR) to provide for both initial and continuous listing requirements in the following manner:

• The standards for initial listing and continuous listing may be prescribed in the SCR rules and may be uniform.
• For a company to be listed and continue to be listed, it must have a public stake of 25%. Otherwise, the promoters, management and the company may be jointly and severally liable to bring the public holding to 25% within 3 months, in the manner prescribed by SEBI, failing which appropriate enforcement action, including delisting, may be taken.
• There should not be any discrimination between a Government company and non Government company.