Taking action against promoters of Accel Frontline for non-compliance of minimum public shareholding norms, Sebi today ordered freezing of voting rights and all corporate benefits arising out of their excess stake in the company.
The market regulator has also prohibited the promoters and directors of the company from dealing in the shares of Accel Frontline except for meeting the minimum 25 per cent public shareholding limit till the time of their compliance to this requirement.
In the final order, Sebi directed "freezing of voting rights and corporate benefits like dividend, rights, bonus shares, split, etc with respect to the excess of proportionate promoter group shareholding in the company, till such time the company complies with the minimum public shareholding requirement."
The regulator has also restrained promoter group entities and directors of company from holding any new position as a director in any listed company, till the time the firm complies with the norms.
Sebi also warned the company, its promoters and directors, of further penal actions including monetary penalties, prosecution proceedings and restriction in its trading, in the event of continued non-compliance.
The company has been asked to present its case before Sebi within 21 days. This order would come into force with immediate effect, Sebi noted.
As per minimum public holding norms, all private sector listed companies were required to achieve at least 25 per cent public shareholding by June 3, 2013.
The promoter group holds 75.3 per cent stake in Accel Frontline.
Securities and Exchange Board of India (Sebi) had passed an interim order dated June 4, 2013 against 105 listed companies which did not comply with the minimum public holding norms and put several restrictions on them.
