Bangalore-based software services provider Wipro has announced that capital market regulator SEBI has approved its proposal to meet the minimum public shareholding requirement of 25 per cent through a transfer of shares to a trust for supporting philanthropy.

Promoters owned 78.28 per cent in Wipro as of March 31 this year, but under SEBI norms a privately promoted company must have a public shareholding of 25 per cent by June 2013.

Promoters of Wipro would transfer the required number of shares to an independent trust called 'Irrevocable Independent Trust,' which would include trustees either from public sector lenders or public financial institutions for performing philanthropic activities.

Wipro, which claimed that it had undertaken several steps to fulfill the market regulator's minimum public shareholding requirement, also said that the de-merger of its diversified business would increase public shareholding and any shortfall would be met by transferred shares to the trust before due date.

The company added in the statement, "The Trust shall affect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement."

Azim Premji, chairman of Wipro, had transferred 12 per cent of his total 295.5 million shares to the trust.

Wipro had hired JM Financial to get advice in the matter.