Print   Close

Thrust on market reforms

April 15, 2008

The government is pushing ahead with key capital market reforms. On top of its agenda is a proposal to peg the minimum public float at 25 percent for all companies. A senior official at the Ministry of Finance told BT: “We are considering it very seriously. We feel it will make the markets more investor-friendly.” At present, the minimum public float can be kept at 10 per cent under some conditions.

The thinking in government circles is that an increase in the free float will prevent price manipulation by a few players and lead to better price discovery.

It’s also felt that it will allow retail investors to have a greater share in the wealth generated by Indian companies.

Rishi Joshi

URL for this article :
@ Copyright 2019 India Today Group.