The Union Ministry of Finance has amended the Minimum Public Shareholding (MPS) rules to boost the Initial Public Offering (IPO) market and simplify listing. The changes, made to the Securities Contracts (Regulation) Rules, 1957, bring in a tiered structure linked to a company's post-listing valuation. In some cases the public shareholding required at listing has been cut to as low as 2.5%, to attract very large firms, but companies must raise it gradually to 25% within a set period after listing. The reform aims to widen market participation and enable listings of large entities such as the National Stock Exchange.