“Sebi has received representation from an industry body highlighting the difficulties faced by listed entities in achieving compliance with MPS requirements, inter alia, on account of capital market volatility arising from ongoing geopolitical tensions in West Asia,” Sebi said in a circular.
The regulator said it will not initiate penal action against companies whose deadlines to comply with MPS requirements fall between April 1 and September 30, 2026.
The move effectively suspends enforcement measures prescribed under its July 2023, master circular, which include fines, freezing of promoter holdings and other restrictions for non-compliance.
Sebi has also directed stock exchanges and depositories to withdraw any penal actions already initiated against such entities for MPS shortfalls from April 1 onwards.
The MPS rule mandates that at least 25% public shareholding be maintained in listed companies.
Sebi said the circular would come into effect immediately.