Public shareholding requirement: exchanges must ensure a majority of equity is held by the public via prescribed mechanisms. These regulations require recognised stock exchanges undergoing corporatisation or demutualisation to ensure a majority of equity capital is held by the public through public issues, offers for sale by trading-rights shareholders, approved placements, private placements to non-trading persons, or combinations thereof, all subject to Companies Act and SEBI disclosure and preferential issue rules; the Board issues confirmation upon compliance and may inspect, audit and direct divestment or other remedial measures for breaches.