Sebi had barred EICL directors and promoters from dealing in the company's securities for failing to achieve the mandatory minimum 25 per cent public shareholding.
The curbs have been revoked so as "not hinder the already commenced voluntary delisting process initiated by the EICL," Sebi said in a order today.
The Securities and Exchange Board of India said however that restrictions would be "re-imposed/revived immediately" if the company fails to delist by June 6, 2014.
Sebi had asked all listed private sector companies were to achieve minimum public shareholding by June 3, 2013.
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Through an order dated June 4, 2013, Sebi had slapped various restrictions on 105 non-compliant companies including EICL, their promoters and directors for not meeting the requirement within the deadline.
It had also warned the firms of further actions including levy of monetary penalties, initiation of criminal proceedings, restricting the trading activities of related stocks and other possible directions.
EICL had submitted to Sebi that it had progressed significantly under the 'Delisting Regulations' and therefore requested the regulator to amend its directions in order to enable it to complete the process of voluntary delisting.