Public shareholding: Sebi refuses to lift curbs on Monotype

Markets regulator Sebi today refused to revoke restrictions imposed on Monotype India for its failure to comply with minimum public shareholding (MPS) norms.

The Securities and Exchange Board of India (Sebi), in June 2013, had imposed various curbs on over 100 firms, including Monotype India, its promoters and directors, for not meeting 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 activities of related stocks.
 

In an order passed today, the regulator has confirmed the directions issued through the interim order in June 2013 against Monotype India, its directors and promoter entities.

It further said the firm had sufficient time to comply with the MPS norms as they had to offload 0.27 per cent to bring down the promoters' holding to 75 per cent.

Moreover, the company's promoters in August 2015 had also said they would comply with MPS requirements through OFS of 0.27 per cent of share capital of the firm, the Sebi order today noted.

"This would mean that even the firm was not sure about its compliance with norms," it added.

Sebi Whole-time Member Prashant Saran said: "I come to the conclusion that at this stage, the company (Monotype India)cannot be said to have complied with the MPS norms."

However, he said the regulator should make an enquiry into the subject as to whether the promoters and their connected entities have reduced their shareholding to 75 per cent or below and come out with findings.