The circular grants a one-time relaxation from penal provisions under the SEBI Master Circular, relating to non-compliance with Minimum Public Shareholding (MPS) requirements. SEBI directed recognised stock exchanges and depositories not to initiate or continue penal actions, such as fines or freezing of promoter shareholding, for listed entities whose compliance deadlines fall between 1st April 2026 and 30th September 2026.