Central government has sought an extension for public sector undertaking (PSU) banks to meet the 25 percent public shareholding norm, sources privy to the developments told CNBC-TV18.

Earlier, market regulator Securities and Exchange Board of India (Sebi) had mandated a minimum 25 percent public float for all listed companies.

This was extended to state-owned firms who were initially given three years to meet the norm.

The three-year deadline as notified by the Ministry in September 2014, was due to end on August 21, 2017, which was later extended by a year.

According to sources, one section of the finance ministry is absolutely fine with the fact that the Sebi has not given an extension in terms of relaxation on this 25 percent public float norm.

But, another section of the ministry, basically, the banking division, minimum one year extension has been sought for the public sector banks to meet this norm.

Previously, the listed PSUs were required to have at least 10 per cent public holding, whereas the minimum public holding in non-PSU listed companies is already 25 per cent.

The non-PSUs were also asked in June 2010 to attain minimum 25 per cent public shareholding within three years.

First Published:Jul 23, 2018 6:33 PM IST