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Sebi lifts restrictions on Elantas Beck

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Press Trust of India Mumbai
Last Updated : May 27 2014 | 6:00 PM IST
Sebi today revoked the curbs it had imposed on Elantas Beck India Ltd, its promoters and directors for not meeting with the required 25 per cent minimum public shareholding norms within the stipulated deadline.
The restrictions on Elantas Beck have been lifted by the capital market watchdog as the firm has now become compliant with the requirements.
However, Securities and Exchange Board of India (Sebi) has referred the matter for adjudication proceedings as the company had not complied with the norms within the due date.
On June 4, 2013, the market regulator had imposed various restrictions on 105 non-complaint firms including Elantas Beck including freezing the voting rights and corporate benefits of their promoters and directors and barring them from holding any new position on boards of listed entities.
In its latest order today on Elantas Beck, Sebi said that as "the company has now complied with the MPS (Minimum Public Shareholding) requirements as stipulated...It would be appropriate and reasonable to vacate the directions issued against the company, its promoters and directors".
"...Hereby revoke the directions issued vide the interim order dated June 4, 2013 against the company, Elantas Beck India Ltd, its directors, promoters and promoter group, with immediate effect," it added.

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The market watchdog noted that Elantas Beck had at its disposal a period of three years starting June 4, 2010 till June 3, 2013 for achieving compliance.
"However, the company has commenced its OFS (offer for sale) only towards the end of the period stipulated for this purpose...," Sebi said.
The market regulator had allowed the listed companies to undertake an OFS of their shares to achieve 25 per cent public shareholding in their respective firms.
In the order, Sebi added that it did not find the reasons offered by the company with respect to its delay in complying with the MPS requirements "as plausible" and has referred the case to its adjudicating officer to conduct an inquiry in accordance with law.

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First Published: May 27 2014 | 6:00 PM IST

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