Markets regulator Sebi today refused to revoke restrictions on Sirhind Steel for its failure to comply with the minimum public shareholding (MPS) norms.
The Securities and Exchange Board of India (Sebi), in June 2013, had imposed various restrictions on over 100 firms, including Sirhind Steel and Miven Machine Tools and their promoters and directors, for not complying with the minimum 25 per cent public holding within the June 3 deadline of the same year.
The 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.
It had also warned the companies of further action, including levy of monetary penalties, initiation of criminal proceedings and restricting the trading activity of related stocks.
In an order passed today, the regulator has confirmed the directions issued through the interim order in June 2013 against Sirhind Steel, its directors and promoter entities.
The regulator said the promoters of the company hold 89.98 per cent while public shareholders hold only 10.02 per cent stake.
"It can be concluded that the public shareholding in the company is less than the mandated minimum of 25 per cent in a listed company. The company is, therefore, in violation of the MPS requirements," the order noted.
In a separate order, Sebi has revoked the restrictions imposed on Miven Machine Tools its directors, promoters and the promoter group, with immediate effect after it complied with the norm.
As per the shareholding pattern of Miven Machine, public shareholders hold a 25 per cent stake. The firm became compliant with the MPS guidelines only on October 1, 2015, the regulator noted.
