MUMBAI: The board of the Securities and Exchange Board of India today gave an in-principle nod to the proposal for shifting away from the concept of promoter in a listed entity to the concept of ‘person in control’ or ‘controlling shareholders’ in a smooth, progressive and holistic manner.
“The Board noted that investor landscape is now changing, with private equity and institutional investors holding significant shareholding in listed companies,” SEBI said in a press release post its board meeting earlier today.
The board of the market regulator has advised the regulator to engage with other regulators to resolve any hurdles in the implementation of the proposal, prepare draft amendments to securities regulations and deliberate on a roadmap for implementation.
Earlier this year, the regulator had issued a consultation paper for public discussion on the issue of doing away with the concept of family owners in the face of new-age companies that are not backed by business families.
“In recent years, number of businesses and new-age companies with diversified shareholding and professional management that are coming into the listed space are non-family owned and do not have a distinctly identifiable promoter group,” SEBI said.
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