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Market regulator Sebi today revoked restrictions it had imposed on Videocon Industries, its directors and promoters for their failure to meet the 25% minimum public shareholding norms within a specified deadline.
The Securities and Exchange Board of India said that restrictions against Videocon Industries have been revoked as the company is now compliant with the required public shareholding norms.
As per Sebi norms, all listed private sector companies were required to attain a minimum of 25% public shareholding by June 3. On June 4, the regulator had imposed various curbs on non-compliant firms, including Videocon Industries.
As on June 30, 2013, Videocon Industries' promoters held 75.56% stake in the company. In order to comply with the minimum public shareholding requirements, Videocon and its promoter entities had opted for Offer for Sale (OFS) route on September 24, 2013 and sold 18 lakh equity shares.
Consequently, the promoters' reduced their stake to 74.95%.
In a separate case of Hira Automobiles, the company's promoter desired to delist the shares of firm and approached Sebi to modify the interim order so as to enable the company/its promoter to proceed with the delisting process.
Hira Automobiles was also among the firms that did not adhere to Sebi's June 3 deadline.
Consequently, Sebi modified its interim direction to the extent that it will not hinder the already commenced voluntary delisting process initiated by the company and its promoter, Raghulinder Singh. He would be permitted to buy shares of the company held by public shareholders in his offer to delist Hira Automobile's shares.
Sebi also directed the company to complete the delisting process within five months and report the outcome of the delisting process within a period of one month thereafter.
Currently, promoters hold 95.72% stake in the company, while public shareholders hold 4.28%.
The directions issued would be re-imposed immediately in case the delisting process of the company is not completed successfully within the five-month period, Sebi said.
