Mumbai — India proposed raising the minimum public shareholding required in listed companies to 35% from 25% in a surprise move on Friday that triggered concerns there will be a flood of enforced share sales.

The proposal by finance minister Nirmala Sitharaman in a budget speech pushed the stock market down, despite India announcing a tighter fiscal deficit target and lower-than-expected borrowing.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now