We have agreed with the views of the IW G which have tried to strike a balance between the challenges posed by concentration of ownership on the one hand and diffusion of ownership on the other.
Even for non-promoter holdings, lower sub limits (10 percent) for natural persons and non-financial entities on one hand and slightly higher (15 percent) limit for well diversified financial entities (excluding those belonging to industrial houses) has been prescribed. This stance allows for greater flexibility for augmentation of capital even while drawing comfort from the statutory ceiling of 26% on voting rights.