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The Master Circular dated 11.07.2023 (“Master Circular”), issued in connection with compliance under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 inter alia, sets out the framework for action to be taken by recognized stock exchanges and depositories against listed entities that fail to meet the Minimum Public Shareholding (“MPS”) requirements, including imposition of fines, freezing of promoter shareholding, and other consequential actions.
Upon representations received from industry bodies highlighting the difficulties faced by listed entities in achieving MPS compliance, inter-alia, on account of capital market volatility due to ongoing geopolitical tensions in the Middle East, SEBI has issued a circular dated 07.04.2026 (“MPS Circular”) granting one-time relaxation from the applicability of penal provisions prescribed under Master Circular.
Accordingly, the listed entities whose due date for achieving MPS compliance falls between 01.04.2026 and 30.09.2026, no penal action shall be taken under the Master Circular for such non-compliance during this period. Further, any penal actions already initiated by stock exchanges or depositories against such entities for non-compliance with MPS requirements during the period from 01.04.2026 till the date of the MPS Circular, i.e. 07.04.2026 are required to be withdrawn.
The MPS Circular shall be applicable with immediate effect, i.e. from 07.04.2026.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
