SEBI has revised the minimum public shareholding (MPS) requirements, lowering the IPO threshold from ₹1,600 crore to ₹5 lakh crore and aligning compliance timelines for listed entities.
Revised Minimum Public Shareholding Norms
On 5 November 2026, SEBI amended the Securities Contracts (Regulation) Rules to revise minimum public shareholding (MPS) obligations for listed companies. The amendment reduces the threshold for mandatory public offer from ₹1,600 crore to ₹5 lakh crore, broadening applicability across market capitalizations.
The revised rules prescribe a timeline of 12 months for compliance with the 25% MPS requirement for entities falling below the threshold. Special-purpose vehicles (SPVs) and Infrastructure Investment Trusts (InvITs) are granted conditional exemptions. Units listed under the International Financial Services Centres (IFSC) are also excluded from standard MPS mandates.
These changes aim to enhance market liquidity and investor participation while accommodating structural innovations in capital raising. Legal practitioners must review client disclosure obligations and monitor compliance timelines for entities approaching the revised threshold.
Citations
- Securities Contracts (Regulation) Amendment Rules, 2026