PSUs OUT OF 25% PUBLIC FLOAT NORM

The finance ministry has exempted state-owned firms from the recent rule that requires listed companies to achieve at least 25% public holding within three years after some of them said they will not participate in disinvestment if the rule was forced on them. Public sector firms will now have to maintain a minimum public float of only 10%. The modified rules also gave a breather to the private sector companies. They will have to comply with the minimum 25% public float CORPORATE LAWS within three years but they will now have flexibility in how the limit is reached, without the annual 5% increase mandated in the current rules.