WHY MARKETS ARE FALLING AFTER BUDGET
Finance Minister Mrs Nirmala Sitaraman has proposed to SEBI to reduce maximum promoter shareholding from the existing level of 75% to 65%, If this proposal is followed then 1174 listed companies will have to sell their stocks in order to reduce promoter's holdings.
This also means that the minimum public shareholding for listed companies has to be increased from 25 percent to 35 percent.
Currently there are 1147 listed companies where promoters holding are more than 65%.
Out of these 1147 companies TCS, Wipro and DMART these three companies will have to sell stakes worth Rs. 88,600 cr.
At current market price the total amount of sale that need to be done by all 1147 companies comes to Rs. 387,000 crore.
However, SEBI has not given any time line yet, if this is implemented without giving sufficient time then it will bring significant impact on the market and specific stocks.
In long term this will be beneficial to our market as it will help in fair price discovery and also will reduce the chances of manipulations.