Market regulator Sebi today modified its interim directions in the matters of Vishnu Sugar Mills and UMS Technologies, enabling these companies to proceed with the voluntary delisting process initiated by them.
The Securities and Exchange Board of India (Sebi), in June last year, had imposed restrictions on the companies, their directors and promoters for failure to meet the 25 per cent minimum public shareholding norms within a specified deadline.
According to Sebi norms, all listed private sector companies were required to attain a minimum of 25 per cent public shareholding by June 3.
These companies' promoters desired to delist the shares of firms and approached Sebi to modify the interim order passed by it in June so as to enable the company/its promoters to proceed with the delisting process.
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 promoters.
They are permitted to buy shares of the company held by public shareholders in their offer to delist shares of Vishnu Sugar Mills and UMS Technologies.
"I find it reasonable and appropriate to modify the directions issued vide the interim order to the extent that the same does not affect or prejudice the efforts of the company/its promoters from continuing with the voluntary delisting process," Sebi Whole Time Member Prashant Saran said in the order.
Sebi has directed Vishnu Sugar Mills to complete the delisting process by June 30 while UMS Technologies has been asked to do the same within five months.
The regulator has also asked the companies to report the outcome of the delisting process within one month.
The directions issued would be re-imposed immediately in case the delisting process of the companies are not completed successfully within the stipulated time-frame, Sebi said.
