Date: April 7, 2026
Issued by: Securities and Exchange Board of India
1. Background
As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, listed entities are required to maintain minimum public shareholding (MPS). Non-compliance typically attracts penal actions including fines, freezing of promoter shareholding, and other restrictions.
2. Key Relaxation Announced
SEBI has granted a one-time relaxation from the applicability of penal provisions under its Master Circular dated July 11, 2023.
Applicable Period: April 1, 2026 to September 30, 2026
Relief Provided:
No penal action will be taken for non-compliance with MPS during this period
Any penal actions already initiated during this period shall be withdrawn
3. Rationale
The relaxation has been introduced in light of:
Prevailing capital market volatility
Ongoing geopolitical tensions impacting market conditions
Practical challenges faced by listed entities in achieving MPS compliance
4. Directions to Stock Exchanges
Stock exchanges are required to:
Notify all listed entities about this circular
Disseminate the circular on their websites
Amend relevant bye-laws, rules, and regulations if necessary
5. Important Note
This is a temporary relief from penalties only.
Listed entities are still expected to take necessary steps to achieve compliance with MPS requirements within a reasonable timeframe.
6. Effective Date
This circular is effective immediately from April 7, 2026.