The Ministry of Finance (MoF) on March 13, 2026 issued a notification amending the Securities Contracts (Regulation) Rules, 1957 under the powers conferred by the Securities Contracts (Regulation) Act, 1956. The amendment is titled the Securities Contracts (Regulation) Amendment Rules, 2026 and came into force on the date of publication in the Official Gazette.
The amendment substitutes clause (b) of sub-rule (2) of Rule 19 to revise the minimum public offer and allotment requirements for companies seeking listing, linking the public shareholding requirement to the post-issue capital of the company. The revised framework specifies different minimum public offer thresholds ranging from 25% for companies with post-issue capital up to ₹1,600 crore to lower percentages with value-based minimum public offers for very large companies, while ensuring a gradual increase in public shareholding over a specified time period.
The rules also prescribe timelines for companies to increase public shareholding to at least 25% after listing, introduce provisions for companies with superior voting rights shares, and allow recognised stock exchanges to impose penalties for non-compliance with public shareholding norms. Special provisions have also been provided for companies listing in International Financial Services Centres.
[Notification No. G.S.R. 184(E)]
