BANKING & FINANCE
SEBI
Ministry of Finance Revamps Minimum Public Shareholding (MPS) Norms for IPOs
The Department of Economic Affairs has amended the Securities Contracts (Regulation) Rules, 1957, to lower the initial Minimum Public Shareholding (MPS) for IPOs from 5% to 2.5%.
The new 'Graded Framework' allows large companies to list more easily by offering lower public shares initially, with a requirement to gradually increase it to 25% over time.
The number of market-cap based categories for MPS compliance has been increased from 3 to 6, providing more granular regulations for various company sizes.
Market cap categories now range from 'Up to ₹1,600 Crore' to the highest tier of 'Above ₹5 lakh Crore'.
Exam Perspective: Reducing the entry barrier for IPOs is expected to boost primary market participation and encourage more 'Unicorns' and large entities to list in India.
The new 'Graded Framework' allows large companies to list more easily by offering lower public shares initially, with a requirement to gradually increase it to 25% over time.
The number of market-cap based categories for MPS compliance has been increased from 3 to 6, providing more granular regulations for various company sizes.
Market cap categories now range from 'Up to ₹1,600 Crore' to the highest tier of 'Above ₹5 lakh Crore'.
Exam Perspective: Reducing the entry barrier for IPOs is expected to boost primary market participation and encourage more 'Unicorns' and large entities to list in India.
Key Facts / Static GK
Union Finance Minister: Nirmala Sitharaman
SEBI Chairman: Madhabi Puri Buch (though norms were revised by MoF/DEA)
DEA (Department of Economic Affairs) Secretary: Ajay Seth
SEBI Chairman: Madhabi Puri Buch (though norms were revised by MoF/DEA)
DEA (Department of Economic Affairs) Secretary: Ajay Seth
Practice Quiz — 20 March 2026
Q1. What does the name of the joint military exercise 'LAMITIYE' mean in the Creole language?
Answer: (C) Friendship — The term 'LAMITIYE' means 'Friendship' in the Creole language, reflecting the cooperation between India and Seychelles.
Q2. In the VRR auction conducted by RBI on 20th March 2026, what was the total amount actually injected into the banking system?
Answer: (C) ₹48,014 crore — According to the news report, while the RBI offered ₹1.50 lakh crore, the actual liquidity injection via the VRR auction was ₹48,014 crore due to lower uptake by banks.
Q3. Regarding the expansion of UPI in Sri Lanka, which of the following statements is true?
Answer: (B) Payments are made by scanning Lanka QR codes through UPI apps. — Indian users can make real-time payments in Sri Lanka by scanning Lanka QR codes using their preferred UPI-enabled mobile applications.
Q4. Which company has launched the world's first Autonomous Maritime Shipbuilding Centre in Nellore?
Answer: (B) Sagar Defence Engineering Pvt Ltd — Sagar Defence Engineering Pvt Ltd has launched this center, which is the first of its kind globally, in Nellore, Andhra Pradesh.
Q5. In the newly launched hybrid passive index fund by Edelweiss AMC, what is the allocated ratio between Equity and Debt components?
Answer: (C) 70:30 — The fund, as indicated in its name and strategy, maintains a fixed asset allocation of 70% in Equity and 30% in Debt (Government Securities).
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