Why is free float calculation a challenge for new age digital companies?

A classic example is that of Paytm owner One97 Communications. Here, the stake of Vijay Sharma and affiliates is not big enough to classify as promoters. There is a challenge in companies like Zee, which does not have a promoter group. Now, there needs to be a tweak of the definition of free float as emerging technology companies cold most likely be predominantly held by FPIs, mutual funds and private equity investors.

The idea should be to only deal with exceptions. After all, Adani group and Paytm are more the exceptions than the rule. Free float has larger implications for public holding and for index weights and therefore to passive investing. Also, it is better to reduce discretion to keep litigations under check. Idea is to have a separate rule book for dealing with the exceptions, which would be few and far between. Professional companies is the challenge.