SEBI Exempts Govt Holding from 50% Demat Requirements

The Securities and Exchange Board of India has clarified that any company, while computing the minimum requirement of 50 per cent shareholding of non-promoters in demat form, can exclude government holding, if the Government holding is in a non-promoter category.

Market regulator advised stock exchanges to put in place the adequate systems and issue the necessary guidelines for implementing the shareholding norm.

The clarification comes in the wake of SEBI 's recent order asking stock exchanges to allow trading in shares in normal segment only if at least 50 per cent of non-promoters holding are in demat form by October 31.

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