Background: The Indian capital markets have matured over the years, with a more robust disclosure framework, adoption of best international practices aimed at providing better information to investors for decision making, at the same time balancing the ease of doing business for issuers.
In May 2019, Primary Markets Advisory Committee (PMAC) had constituted a sub group to examine the relevance of ‘concept of promoter’ in the context of Indian Securities Market. The sub-group did a study of various international jurisdictions, where concept of ‘controlling shareholder’ is used rather than the term ‘promoter’.

Proposal: A. Reduction in lock-in periods for minimum promoter’s contribution and other shareholders for public issuance on the Main Board.
B. Rationalization of the definition of ‘Promoter Group’
C. Streamlining the disclosures of group companies and
D. Shifting from concept of ‘promoter’ to concept of ‘person in control’.

Last date for public comments: June 10, 2021

Source: SEBI Consultation Paper dated May 11, 2021

Reference: ICDR Regulations