Sebi allows two more avenues to hike public float at listed companies

The new methods include transfer of shares held by promoters to an ETF run by a Sebi-registered MF, exercising options and allotment of shares under ESOP programmes

The Securities and Exchange Board of India (Sebi) on Friday introduced two additional methods and streamlined existing ones to help listed companies achieve the 25 per cent minimum public shareholding (MPS) requirement.

The new methods introduced include transfer of shares held by promoters to an exchange traded fund (ETF) operated by a Sebi-registered mutual fund.  However, maximum 5 per cent stake in the listed entity will be allowed to transfer under this route subject to certain disclosure requirements.

Another method introduced by Sebi to allow increase in public holding by exercising options and allotment of shares under an employee stock