Markets regulator Sebi today confirmed the restrictions it had imposed on five companies for not meeting the Minimum Public Shareholding (MPS) norms.
The firms against whom the restrictions are confirmed are Hindustan Breweries and Bottling, Bombay Rayon Fashions, Gandhidham Spinning and Manufacturing Company, Automobile Products of India and India Sugars and Refineries.
The Securities and Exchange Board of India (Sebi) in June 2013 had imposed various curbs on over 100 firms, including these five firms, their promoters and directors for not achieving 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 of further actions including levy of monetary penalties, initiation of criminal proceedings and restricting the trading activities of related stocks.
In five separate but similarly-worded orders, the regulator
confirmed the directions issued through the interim order dated June 4, 2013 against the companies.
Consequently, Sebi said that it may also initiate other action, as appropriate in law, against the companies, their directors and promoters. The watchdog noted that even after passing of the June 4, 2013 order, these companies have not taken any steps to comply with the MPS requirement.
It observed that the companies have not complied with the MPS requirements till date and such non-compliance being continuous in nature, it becomes necessary for Sebi, for proper regulation of the securities market, to confirm the directions issued against them.
As per the last disclosed shareholding pattern of the companies, public shareholding of Hindustan Breweries stood at 15.5 per cent for the quarter ended December 2012 while public holding of India Sugars and Refineries was 16.08 per cent for the quarter ended March 2015.
Similarly, public shareholding of Gandhidham Spinning and Manufacturing Company, Automobile Products of India and Bombay Rayon Fashions stood at 1.18 per cent, 15.29 per cent and 7.9 per cent, respectively for the quarter ended September 2015.
