Market watchdog Sebi today confirmed the restrictions it had imposed on International Constructions for not meeting with minimum public shareholding norms.
The Securities and Exchange Board of India (Sebi), through an interim order in June 2013, had imposed various curbs on over 100 firms, including International Constructions, its promoters and directors for not achieving the minimum 25 per cent public holding by the June 3 deadline.
The regulator had frozen 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 of further action including levy of monetary penalties, initiation of criminal proceedings and restricting trading activity of related stocks.
In an order passed today, Sebi has confirmed "the directions issued vide the interim order dated June 4, 2013 against International Constructions, its directors, promoters and promoter group".
This order would remain in force till further directions.
Furthermore, Sebi said it "may also initiate other action, as appropriate under law, against the company, its directors and promoters".
As per the shareholding pattern of the company at the end of the June quarter, the promoters' stake stood at 86.27 per cent and that of the public at 13.73 per cent.
The regulator said the trading was suspended in 2001 and the company had adequate time of three years (i.E. From June 4, 2010 till June 3, 2013) to comply with the minimum 25 per cent public holding norms as mandated, Sebi noted.
It appears that the firm has not taken steps towards compliance, it added.
