Phase IFoundation
Background
Overview
MPS norms are fundamental to the regulatory framework of Indian capital markets, directly impacting corporate governance, investor protection, and market efficiency. Understanding these norms is crucial for analyzing market dynamics and regulatory policy.
Minimum Public Shareholding (MPS) norms, mandated by the Securities and Exchange Board of India (SEBI), require all listed companies to maintain a certain percentage of their shares with the public (non-promoter shareholders). These norms aim to ensure liquidity, broaden ownership, and prevent excessive promoter control in the market.