Markets regulator Sebi Thursday revoked the directions issued against RMG Alloy Steel, its directors, promoters and promoter group, after the firm complied with minimum public shareholding requirements.
"... it is observed that RMG Alloy is now compliant with the requirement of minimum public shareholding... with effect from April 19, 2018 i.e. when the public shareholding in the company increased to 25 per cent.
"Vide an email dated April 26, 2018, BSE also confirmed to Sebi that RMG Alloy achieved minimum public shareholding compliance on April 19, 2018," the regulator said in an order.
Through an interim order in June 2013, Sebi had prohibited the promoters, promoter group and directors of RMG Alloy from dealing in securities of the firm except for the purpose of complying with MPS requirements.
Among others, a direction related to freezing of voting rights was also given.
In October 2013, the regulator passed a ruling vacating the directions in the interim order. However, it directed that the interim order should immediately be revived against the concerned entities if MPS norms were not met by February 2014.
More From This Section
Again in March 2014, the regulator came out with another ruling in the matter. This time the directions in the October 2013 were modified and the time limit for meeting the MPS requirements was extended till February 2016.
In its fresh order, the regulator said that though RMG Alloy ensured compliance with MPS requirements, it is with a delay of more than 2 years and 2 months.
"In this context, it is understood that Sebi has initiated appropriate action in accordance with law for the delayed compliance," the regulator said.
However, noting that the promoter and promoter group's shareholding in RMG Alloy has been brought at 75 per cent thereby ensuring MPS at 25 per cent, the regulator said that the directions issued against RMG Alloy, its promoters/ promoter group along with its directors, through the interim order read with the rulings in October 2013 and March 2014 need not be continued.