New Delhi: With an aim to enable the further recapitalisation of public sector banks (PSBs), the Finance Ministry may seek a relaxation for PSBs in the market regulator Sebi’s norms for entities requiring promoters to have 75 pc holdings in them, according to a senior official source
The Securities and Exchange Board of India (Sebi) listing norms mandate that every listed entity will maintain a minimum public shareholding of 25 pc. The government shareholding in many state-run banks is currently above 75 pc. In case of their further recapitalisation, this will go up over 90 pc in some cases and also touch 99 pc.
Previously, the government had taken Sebi approval for recapitalising PSBs which had pushed up the government’s stakes in these banks. We have taken permission from Sebi on having over 75 pc government shareholding in PSBs in the past and if banks are further capitalised , we will do so again,” source said.