Cos dilly dallying on public shareholding rules: Sebi

He said that a lot of corporates have been flouting the norm because they feel the consequences are not grave enough. “The consequences can be really severe,” he said.

As per the norm,all listed companies must have at least 25 per cent public shareholding by June,2013 while PSUs must have a minimum public holding of 10 per cent by August,2013.

Sinha said that he has “a serious complaint on this attitude” of business leaders making new recommendations time and again.

Closely following the flash crash last week that led to a 900 points fall in Nifty,Sinha said that Sebi will soon frame guidelines on annulment of trade.

“We want to be very cautious in whatever structures we will come out with. We have already set up a group,which is looking at various aspects,” he said.

While there have been proposals to improve latency Sinha said that he is conscious of the fact that it is important but he is concerned on the risk management front. “If it is a question of compromising between the risk management requirement and encouraging more speedy execution of trade then we will go for the first.”