This has been suggested for ease of doing business and because recent reforms have made this requirement redundant, according to the consultation paper
The committee has suggested that a sunset clause be added, so that if the ranking of the entity changes for three consecutive years, then the regulatory provisions should cease to be applicable for the listed entity.
Sebi expert committee for facilitating ease of doing business suggests that any public non-individual shareholder who would continue to hold at least five per cent of the post-offer equity share capital should be permitted to meet the shortfall in the minimum promoters’ contribution