Mumbai:  The Securities and Exchange Board of India (SEBI) has approved significant relaxations in minimum public shareholding norms, providing much-needed relief to recently listed companies with large promoter stakes.

Under the revised guidelines, companies now have an extended timeline of up to ten years to bring down promoter holdings to the mandated 75 percent. Earlier, the compliance window was shorter, putting pressure on firms to offload shares quickly.

One of the key beneficiaries of this move is Bajaj Housing Finance, which marked its stock market debut on September 16, 2024. The company’s promoter, Bajaj Finance, currently holds around 88.7 percent stake. As per the earlier rules, this stake was to be reduced to 75 percent by 2027. With SEBI’s new framework, the deadline has been pushed to 2029, giving the company two additional years to comply.

The extension is expected to ease liquidity concerns and allow promoters more flexibility in managing stake sales. Analysts believe the move will also encourage more large firms to consider public listings, as the immediate dilution burden has been lowered.

For Bajaj Housing Finance, the change ensures breathing room to gradually adjust its shareholding structure without facing regulatory penalties or market disruption from rushed stake sales. Market watchers will now be closely monitoring how the company plans its divestment strategy over the coming years.