Sebi confirms curbs on Classic Electricals and Shikhar Leasing

Capital market regulator Sebi has confirmed the curbs it had imposed on Classic Electricals Ltd and Shikhar Leasing & Trading for not meeting the minimum public shareholding norms.
The Securities and Exchange Board of India (Sebi) in June last year had imposed various restrictions on over 100 firms including Classic Electicals and Shikar Leasing, its promoters and directors for not achieving the minimum 25 per cent public holding within the June 3 deadline.
The regulator had frozen the voting rights and corporate benefits of promoters/directors of these companies and barred them from holding any new position on boards of listed firms, among others.

It had also warned of further actions including levy of monetary penalties, initiation of criminal proceedings and restricting the trading activities of related stocks.
"...Hereby confirm the directions issued vide the interim order dated June 4, 2013 against -- Classic Electricals Ltd, its directors, promoters and promoter group, and Shikhar Leasing & Trading Ltd, its directors, promoters and promoter group," Sebi said in a common order passed against the firms.
This order shall remain in force till further directions, it added.

Further, noting that the non-compliance by the companies with the minimum public shareholding norms and also the fact that such violations are being continued by them, Sebi said that it "may also initiate other action, as appropriate in law, against the company, its directors and promoters".

Among others, the companies had stated to Sebi that they are 'small companies' and are not able to delist the shares because of financial and other administrative difficulties.
Not convinced with the argument, the regulator observed that "a small company falling with the criteria specified under...The Sebi (Delisting of Equity Shares) Regulations, 2009, is eligible for special provisions for delisting, which are simpler compared to the normal delisting process".