Government banks, companies have time till August to comply with the provision of 25% public holding

Ahmedabad. Market regulator Securities and Exchange Board of India (Sebi) may extend the deadline for some public sector banks and state-owned companies to comply with the minimum public shareholding requirement of 25 per cent till August 2024. According to sources, such relaxation will be given so that PSU banks and companies can gradually comply with this condition in a phased manner. At present these banks are raising funds through Qualified Institutional Placement (QIP) and in this process the government’s stake in the banks is also gradually decreasing. Sources also said that at present there is no plan to sell shares of public sector banks through direct issue. At present, the government’s stake in five public sector banks is more than 75 percent, which include Indian Overseas Bank, UCO Bank, Central Bank of India, Punjab and Sindh Bank and Bank of Maharashtra. The value of the government’s stake in these five banks at the current market rate is Rs. 65,000 crores.