Small Shareholders of Company Meaning of Small Shareholder: The Companies Act 1956 does not define the term

Small Shareholder of a Company. However as cited in the Section 252 of the Companies Act, 1956, a Shareholder holding shares of nominal value of twenty thousand rupees ( 20,000) or less in a public company is generally considered as Small Shareholder for various purposes under the Companies Act. *Nominal Value means the Face Value of Shares of a Company. Note: However under different Rules/Regulation the minimum shareholding value to be counted as a Small Shareholder may change. For e.g. SEBI (Buy-Back of Securities) (Amendment) Regulations, 2012 requires a small shareholder of a listed company, who holds shares or other specified securities whose market value, on the basis of closing price of shares or other specified securities, on the recognised stock exchange in which highest trading volume in respect of such security, as on record date is not more than two lakh rupee.