Minimum Public Shareholding (MPS) Reforms ⭐⭐⭐⭐⭐

Ministry

Department of Economic Affairs
Ministry of Finance

Amendment

Securities Contracts (Regulation) Rules, 1957

Major Change

Minimum Public Shareholding at IPO reduced

From 5% → 2.5%

Categories Expanded

Earlier:

• 3 categories

Now:

• 6 categories

Objective

• Ease listing of large companies
• Improve capital market efficiency
• Encourage IPOs

UPSC Keywords

IPO
SEBI
Capital Markets
Public Shareholding