Public sector banks are expected to get another two-year extension to comply with Sebi's minimum public shareholding (MPS) norms, a top government official has said.
Out of 12 public sector banks (PSBs), five are yet to comply with MPS norms and the government's holding is beyond 75 per cent.
As per the Securities and Exchange Board of India (Sebi), all listed companies must maintain an MPS of 25 per cent.
However, the regulator gave special forbearance to state-owned banks till August 2024 to meet the requirement of 25 per cent MPS.
"We have written to the Department of Economic Affairs for the extension," Financial Services Secretary Vivek Joshi told PTI in an interview.
Generally, he said, a two-year extension is given and hopefully it should come sooner than later.
Five banks have minimum public shareholding of less than 25 per cent.
Currently, government holding in Delhi-based Punjab & Sind Bank is 98.25 per cent. It is followed by Chennai-based Indian Overseas Bank at 96.3
