Govt's plan to increase listed cos' public shareholding to improve corporate governance | Dr Ranjitha Ajay

The recent proposal from finance minister Nirmala Sitharaman to increase the minimum level of public shareholding from current 25% to 35% in listed firms is a welcome step to improve price discovery of stocks and corporate governance mechanism. This also results in increase in institutional shareholding in a firm. Also, it’s a positive step towards increasing retail and international investors’ participation in Indian stock market.