India likely to put 35% min shareholding rule: source

India's government is likely to put on hold a plan to raise the minimum public shareholding in listed companies to 35% from 25%, a source with direct knowledge of the matter said on Friday.

The government is also looking for ways to ease concerns of foreign portfolio investors that have pulled out of Indian equity markets after a budget announcement of higher taxes for individuals and trusts earning more than 20 million rupees a year, the source said.