Sebi acts against promoters, directors of Southern Fuel Ltd

Cracking the whip on the promoters of Southern Fuel Limited for failing to attain minimum 25% public holding, markets regulator Security and Exchange Board of India (Sebi) has ordered freezing of their voting rights and corporate benefits with respect to the excess shares held by the promoters beyond the 75 per cent limit, till the time the firm complies with the norms.

Regulator also barred them from holding any new position on boards of any listed firm. The promoters and directors have also been barred from the market till they comply with the minimum public shareholding requirements.

The other possible actions include moving their shares to trade-to-trade segment, excluding them from futures and options trade, monetary penalties under adjudication proceedings, initiation of criminal case by way of prosecution and other actions, as may be deemed appropriate at a later stage.

As per the last disclosed shareholding pattern of the company as on June 2015, the promoter holding was at 90.6% and the public shareholders were holding 9.4%.

Besides, promoters and directors of the firm have been prohibited from buying, selling or other dealing in shares of their respective companies, except for the purpose of complying with the minimum public holding norms.

The company and their promoters and directors have been asked to file their replies, if any, to the Sebi order within 21 days, Sebi said.