Regulation 4 - Manner of increasing the public shareholding - Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006

CHAPTER II MANNER OF INCREASING PUBLIC SHAREHOLDING 4. Manner of increasing the public shareholding.- Subject to the provisions of sub-section (8) of Section 4B of the Act and the scheme, the recognised stock exchange shall ensure that at least fifty-one per cent. of its equity share capital is held by the public, either by fresh issue of equity shares to the public through issue of prospectus or in the following manner: - (a) offer for sale, by issue of prospectus, of shares held by shareholders having trading rights therein; (b) placement of shares held by shareholders having trading rights to such persons or institutions as may be shortlisted by the recognised stock exchange with the approval of the Board; (c) issue of equity shares on private placement basis by the recognised stock exchange to any person or group of persons not being shareholders having trading rights or their associates subject to the approval of the Board; or (d) any combination of the above.