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ACGA submission to SEBI on Response to Consultation Paper on Minimum Public Offer (Free Float) and Timelines to Comply with Minimum Public Shareholding (MPS) for Large Issuers

On 8 September 2025, ACGA submitted a response letter to The Securities and Exchange Board of India (SEBI), regarding their Consultation Paper dated August 18, 2025, which proposes revisions to India’s Minimum Public Offer (MPO) and Minimum Public Shareholding (MPS) requirements for large issuers.

The shift toward global norms is commendable, but SEBI should ensure India’s market remains both accessible and credible. International practice consistently couples free float relaxations for large issuers with higher governance, ongoing transparency, and explicit review triggers. We urge periodic review of the impacts of the revised regime on market depth, investor confidence, and minority shareholder protection.

Our response addresses each proposal in the consultation paper by reference to its number in the Consultation Paper and gives a clear statement as to whether we agree or disagree with the proposal and our rationale. Additional suggested safeguards on corporate governance and board structure for low free float issuers are provided as well.