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Capital markets regulator Sebi today revoked the restrictions imposed on Omaxe, its directors and promoters, after the real estate company met the minimum public shareholding norms.
Citing that Omaxe had "now achieved" the 25% minimum public shareholding, Sebi in an order dated January 10 said: "...Hereby revoke the directions vide the interim order dated June 4, 2013 against the company, Omaxe, its directors, promoters and promoter group, with immediate effect".
On June 4, last year, the Securities and Exchange Board of India (Sebi) had slapped several restrictions on over 100 non-compliant companies including Omaxe, their promoters and directors, for not meeting the public holding requirement within the deadline of June 3, 2013.
The market 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.
Omaxe in its reply to Sebi had submitted that it had examined various methods to comply with the norms and due to the negative stock market sentiments towards the 'Real Estate and Infrastructure' sector in the past couple of years, it had been very difficult to raise funds either through the primary or the secondary route.
The realty firm had undertaken a series of OFS (Offer for Sale) on four dates, to comply with the norm.
"...The company has now achieved the compliance through a combination of OFS and bonus shares," Sebi said in the order.
"The public shareholders now hold 25.01% in the company," it added.
