Ownership, FII & Promoter Activity
Promoter Above 75% — SEBI Dilution Risk is a Ownership, FII & Promoter Activity screen. It checks every NSE-listed stock against 1 condition computed from nightly data, after excluding heavily pledged promoters and very small market caps. This page explains the rule, each figure and its source. It lists no stocks and is not advice.
SEBI's listing obligations require a minimum 25% public float for NSE-listed companies, which means promoter holding cannot legally exceed 75% on a sustained basis. When promoter holding breaches this threshold, the company faces a regulatory mandate to dilute, creating a known future supply of shares that functions as a price ceiling overhang. This is a uniquely Indian regulatory risk signal with no direct parallel in US or European markets. Critically, this screen is a risk flag — not a quality judgment. A fundamentally excellent, well-governed business can simultaneously have SEBI dilution risk if the promoter family holds a very large stake and has not yet initiated dilution. The good_direction for promoter_holding_pct is marked 'low' specifically in the context of this screen, meaning lower promoter holding reduces forced-dilution risk — this should not be read as a general preference for low promoter holding.
A stock must satisfy every condition below. Conditions are grouped under the pillar they test.
Regulatory Overhang Risk
Dilution Headroom to Compliance
Described in the philosophy; not a pass/fail condition in the current rule
Hard excludes
Ranked by Promoter Holding, highest first.
Promoter Holding %
Promoter and promoter group shareholding as a percentage of total paid-up equity, sourced from the FinEdge shareholding pattern endpoint for the latest reported quarter.
The screen's qualifier condition is promoter_holding_pct > 75. Values above 75% indicate the company is in breach of SEBI's minimum public float requirement and must dilute. good_direction is 'low' in this screener context only because lower promoter holding means the regulatory overhang is smaller — this does not reflect a general investment preference for low promoter holdings, which can signal strong founder conviction.
Low is better
Promoter Headroom to 75% (%pts)
Computed as promoter_holding_pct minus 75.0, expressed in percentage points. A positive value indicates how many percentage points the promoter must dilute to reach the compliance boundary. A negative value indicates the company is already compliant.
Low is better
Type hypothetical values to see which conditions they satisfy. These are not real stocks and nothing here is stored.
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How many stocks pass if this threshold were set differently. Counts only; no stocks are named.
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We have not measured this screen yet, so there is no record to explain.
Not yet testable — 5 of 6 points needed to chart a rolling information coefficient.
This is a historical, statistical measurement produced by FINOME TECHNOLOGIES PVT LTD's research harness on past data. It is not a prediction, and past results do not indicate future results. The universe is today's Nifty 500 constituents, so the sample is affected by survivorship bias. It describes how a screen's selections behaved in the past and does not constitute investment advice or a recommendation.
Rule version 1.0.0