The Securities and Exchange Board of India (SEBI) has issued a circular granting a one-time relaxation from the penal provisions in its Master Circular for listed entities that do not meet Minimum Public Shareholding (MPS) requirements, where the due date for MPS compliance falls between 1 April 2026 and 30 September 2026. The decision follows an industry representation citing difficulties in achieving MPS compliance amid capital market volatility linked to ongoing geopolitical tensions in the Middle East. SEBI’s July 2023 Master Circular under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 sets out the process for stock exchanges and depositories to handle MPS non-compliance, including fines, freezing of promoter shareholding and other consequential actions. Under the relaxation, recognised stock exchanges and depositories are advised not to take any penal action envisaged under the Master Circular against affected entities for non-compliance during the specified period, and to withdraw any penal actions already initiated for such non-compliance from 1 April 2026 up to the date of the circular. The circular applies with immediate effect, and stock exchanges are instructed to bring it to the attention of listed entities, disseminate it on their websites, and amend relevant bye-laws, rules and regulations if necessary to implement the measure.
Securities & Exchange Board of India 2026-04-07
Securities and Exchange Board of India grants one-time relaxation from Master Circular penalties for Minimum Public Shareholding non-compliance due by 30 September 2026
The Securities and Exchange Board of India has granted a one-time relaxation from penal provisions under its July 2023 Master Circular for listed entities that fail to meet Minimum Public Shareholding requirements where the compliance due date falls between 1 April 2026 and 30 September 2026. Recognised stock exchanges and depositories are instructed not to impose, and to withdraw, fines, freezing of promoter shareholding and other actions for such non-compliance during this period, and to amend their rules to implement the measure.