The Securities Exchange Board India (‘SEBI’) has, by its circular dated February 22, 2018 (‘MPS Circular’), introduced the following two additional methods that can be adopted by listed entities to achieve minimum public shareholding in compliance with the requirements under the Securities Contracts (Regulation) Rules, 1957 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘ICDR Regulations’):

i. Open Market Sale:

a. Promoters/ promoter group are now permitted to sell up to 2% of their total paid-up equity share capital in the company in the open market, subject to five times’ average monthly trading volume of the shares of such company.

b. The entity is required to, at least one trading day prior to every such proposed sale,announce the: (A) intention and purpose of sale; (B) details of the sellers and the shares to be sold; and (C) time period for completion of the sale, to the stock exchange(s) where its shares are listed.

c. The listed entity is also required to give an undertaking to the relevant stockexchange(s) obtained from the promoters/ promoter group to not buy any shares in the open market on the dates on which the offer for sale is open.

ii. Qualified Institutions Placement of eligible securities under Chapter VIII of the ICDR Regulations: SEBI, by way of a circular dated February 12, 2018, has dispensed with the requirement of adhering to minimum public shareholding for a listed issuer intending to make a Qualified Institutions Placement.

The MPS Circular supersedes a previous circular issued by SEBI on November 30, 2015.