 "Sebi revokes restrictions against BGR Energy, Sah Petroleums")
The two companies complied with the guidelines after Sebi's deadline of June 3.
The Securities and Exchange Board of India had imposed various restrictions on 105 firms and their promoters and directors on June 4 after the expiry of deadline for achieving minimum public shareholding of 25%.
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The regulator had frozen the voting rights and corporate benefits of promoters and directors of these companies and barred them from holding any new position on boards of listed firms and also, among others.
It had also warned of further actions including levy of monetary penalties, initiation of criminal proceedings, restricting the trading activities of related stocks and other possible directions.
In separate orders, Sebi said the restrictions are being revoked as the two have now complied with the norms.
BGR Energy had opted to divest 44.22 lakh equity shares constituting 6.13% of the share capital of the company through an Offer for Sale (OFS) on June 3, 2013. However, it was able to sell only 22.47 lakh equity shares and the promoter group could divest only 3.12% stake.
Consequently, the promoter holding reduced from 81.13% to 78.01%. In order to meet the public holding norms, the company went for another OFS for 21.75 lakh shares on July 5, 2013.
Pursuant to the same, the promoters holding was further reduced to 75%, thereby raising the public holding to stipulated 25%.
In Sah Petroleums case, it had undertaken a bonus issue of equity shares to the public shareholders and had allotted 69.84 lakh equity shares to them on July 12 for the purposes of complying with Sebi's norms. Consequently, the promoter holding reduced from 87% to 74.98%.
In orders dated September 4, Sebi has revoked the directions vide the interim order dated June 4, 2013 against BGR Energy and Sah Petroleums and their respective directors, promoters and promoter group, with immediate effect.