The government has extended the deadline for Central Public Sector Enterprises (CPSEs) and Financial Institutions to comply with minimum norms of public shareholding till August 2026. According to the office memorandum of the Ministry of Finance, the Central government has given time till August 1, 2026 to increase public shareholding in CPSEs and public sector banks and financial institutions to at least 25 per cent in public interest.
Central companies where the public shareholding is less than 25 per cent and which are unable to increase their public shareholding to at least 25 per cent within the period prescribed under Rule 19A of the Securities Contracts (Regulation) Rules, 1957, will now be given a two-year extension. They will have more time. As per the earlier order, the two-year exemption would end on August 1, 2024.
Request made to SEBI
The Securities and Exchange Board of India (SEBI) is requested to take necessary action in the matter and bring it to the notice of the stock exchanges concerned, the office memorandum said. Five of the 12 public sector banks are yet to meet minimum norms of public shareholding. The government’s shareholding in these banks is more than 75 per cent.
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How much stake does the government have in which banks?
According to SEBI, all listed companies must hold a minimum public shareholding of 25 per cent. The minimum public shareholding in five banks is less than 25 per cent. Currently, the government shareholding in Punjab and Sindh Bank is 98.25 per cent. At the same time, Chennai has a 96.38 per cent stake in Indian Overseas Bank, a 95.39 per cent stake in UCO Bank, a 93.08 per cent stake in Central Bank of India and an 86.46 per cent stake in Bank of Maharashtra.
I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,
