The compulsory 25% public float norm for PSU's has been called off by government. As per the new alterations by the finance ministry these listed state run firms will have to scale up to a level of 10 percent holding in a time period of three years.

Earlier the norm stated that it was absolutely mandatory for the public listed companies to divest at least 25 per cent holding from the promoter's stake for the public.

But soon within two months, this condition was made void to ward off a host of issues with PSU's like initial or follow-on offers that can have a negative impact on the disinvestment programme of the government.

The new amendments by the government are of great significance as industry analysts have criticised the June norms. The rationale behind this is that innumerable offers floating in the market may dampen its spirit in the long run.

This will also shelve off the number and amount of public issues expected to hit the market in coming future.

As per the new norms, there will be 15 PSUs that shall fulfil the mandate of 10 per cent public holding down from 35 that were originally supposed to validate the 25 per cent condition.