25% Public share holding

According to new ruling of Finance ministry, all companies listed on stock exchange or companies going to list need to have minimum 25% public share holding. Companies having less than 25% public float, need to divest minimum 5% shares every year to reach minimum share holding. Companies who are coming with a issue size of more than 4000 Crore, can initially divest 10 % but later, they have to reach that limit in maximum 3 years.
This will enhance public participation, transparency and trading volume. Brokers, promoters or traders will not able to manipulate share price due to large amount of tradable shares.
This will help government to raise capital from market by divesting its portion in PSUs.
PSU
NTPC- 84.5% Government holds
NMDC- 90% Government holds
NHPC- 86.36% Government holds
OIL INDIA - 78.43% Government holds
SJVN LTD- 89.97% Government holds
POWER FINANCE CORP.- 89.78% Government holds
MMTC- 99% Government holds


In current financial year FY 2010-2011 , Government has raised Rs. 1063 crore, last year FY 09-10, Government raised Rs. 31081 crore from capital market .