Brady & Morris Engineering Company and its promoters have settled a case of alleged violation of norms related to minimum public shareholding with Sebi on payment of Rs 6.80 lakh as settlement fee to the regulator.
As per Sebi norms, over 100 private listed companies including Brady & Morris Engineering Company were required to bring down their promoter shareholding to 75 per cent.
It was found that Brady and Morris and its promoters, in order to comply with the norms, had sold 1.60 lakh shares on May 20, 2013 in the open market to pursuant to which the promoter holding was reduced to 73.75 per cent.
However, it was alleged that the method adopted by the Brady & Morris Engineering Company and its promoters -- WH Brady Company, Pavan Gokulchand Morarka, Rachna Morarka, Vaibhav Morarka and Shivum Holding Private Ltd -- "was not a prescribed mode of compliance" as per Sebi directives.
Pending adjudication proceedings, the company and its promoters offered to settle the matter against them on payment of Rs 6.80 lakh, under Sebi's consent mechanism.
Settling the matter, Sebi in an ruling today said that "this settlement order disposes of the adjudication proceedings initiated against the applicants".
Under consent mechanism, entities can seek to settle cases with the regulator after payment of certain charges and and other expenses without admission of guilt.
As per Sebi consent order today, the regulator could take enforcement actions including reopening of the pending proceedings against the company and its promoters, if any representation made by the company are discovered to be untrue.
