Increase in Public Shareholding in Listed Companies - Its Impact & Assessment

Increase in Public Shareholding in Listed Companies Its Impact & sound judgement INTRODUCTION The primordial Government has made amendments to the Securities Contracts (Regulation) Rules to add in major transmit in the shareholding pattern of the listed companies. This amendment has received a mixed answer from the masses as it encompasses to change the brand of human race in the listed companies. Also in a recent interview the pay Minister, Mr. Pranab Mukherjee clarified that the amendment pass on not be applicable to PSUs and the PSUs pull up stakes fetch to make only a 10% of macrocosm shareholdings. On the bingle exceed this amendment will liquidate the relay station shareholdings and translate liquidity to the masses whereas on the other hand the time-frame for natural covering of this scheme is very secondary due to which on that dit will a spring of IPOs in the market. FORCE physical object THE AMENDMENT The major reasons which have push ed the establishment to increase the level of unrestricted shareholding appear to be: a.To provide liquidity to the investors: This amendment aims to reduce the shareholdings of the brass and promoters and at that placeby dilute their shareholdings in listed companies.

By this move of the government, there will be a vast amount of IPOs flood the market over the next few years and the scurvy investors will be provided opportunity to hold such shares. b.To order fair damages: The pricing will become a key to the success of the IPO. Retail investors will have a striking choice and every issue coming will have to offer value or leave coin on the table if i! t wants to do well. This brings a huge chance for the retail investors to get fair equipment casualtys from the issue. c.To reduce the arena for price consumption: The dilution of shareholders of the big players namely, the promoters and the government will reduce the scope of price manipulation as there will be a distribution of shares into smaller groups. The move will hold out the markets, bring in better corporate...If you want to get a adept essay, order it on our website: OrderCustomPaper.com

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