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MPS Norms Revision
March 19 , 2026
15 hrs 0 min
16
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- The Ministry of Finance has amended rules on Minimum Public Shareholding (MPS) to boost the Initial Public Offering (IPO) market and ease listing norms.
- The rules introduce a tiered structure based on post-listing valuation of companies for public shareholding requirements.
- Minimum public shareholding at listing has been reduced in some cases (as low as 2.5%) to encourage large company listings.
- Companies must gradually increase public shareholding to 25% within a specified time period after listing.
- The changes amend the Securities Contracts (Regulation) Rules, 1957, governing stock market listings.
- The reform aims to improve market participation, revive IPO activity, and enable the listing of large firms like Reliance Industries-linked ventures and the National Stock Exchange.
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