To introduce more transparency and public participation in the stock market, the finance ministry has proposed raising the public shareholding limit for listed companies to at least 25 per cent from the existing 10 per cent. … Read on
Outwardly it looks like a desperate attempt at Disinvestment of PSU companies, which has totally stopped since the current govt came to power. Now that the markets are looking down and revenues of the govt could fall, will the public really buy into these corporates? or even the govt PSUs that have seen fall of public interest , especially in Oil Companies, due to the governments record as a promoter being small investor or corporate profit unfriendly and highly unprofessional by making them share the governments cost burdens via regulated markets, subsidy burden sharing and oil bonds. Not only that regulator is still toothless and time and again has been seen as blundering, and bating for big corporates and not only that in the country’s scam history how many promoters of vanishing and ghost companies have ever been brought to book let alone punished?
What effects will this have on the markets if actually implemented in its entirety something that i think is highly unlikely . And will this be accepted by corporates and all powerful business families that would be wary of this kind of legislation and that have massive influence on the decision makers via donations and slush funding.