Move to raise threshold of public holding in listed co

The proposal in the Union Budget to raise the threshold for non-promoter public shareholding in listed companies will bring in transparency and eliminate instances of price rigging, feel stock market experts.

"This is a positive move, and less-knowledgeable small investors also will benefit from this. This will also bring in greater transparency to the market," said Dinesh Thakkar, chairman and managing director, Angel Broking. Market regulator Sebi has been contemplating this move since early 2002. Market players feel that the move will also improve liquidity in the market. The Budget sought to raise, in a phased manner, the threshold for non-promoter public shareholding for all listed companies. The average public float in Indian listed companies is less than 15%.

Listed companies welcomed the finance minister's move. "The move will increase liquidity in the market, and transparent companies will attract lots funds. In general, this is a growth budget with emphasis on generating consumption and investment,'' said Manoj Agarwal, managing director, Adhunik Metaliks Ltd.