Markets regulator Sebi today partially lifted curbs imposed on Batliboi for non-compliance with minimum public shareholding norms, in a bid to facilitate the firm to transfer shares to an independent trust to meet the guidelines.
Sebi, in June last year, had barred promoters and directors of 105 firms, including Batliboi from dealing in securities of their respective firms after they failed to meet the 25 per cent minimum public shareholding requirement within the required timeline.
Accordingly, the Securities and Exchange Board of India (Sebi) said the direction issued in interim order dated June 4, 2013 "stands modified to the extent that it shall not hinder the transfer of excess shareholding of the promoters to the Trust."
The company has been directed to complete the process of transfer of shares to the Trust within a period of two months.
The market regulator added that the restrictions would be re-imposed immediately if the company fails to sell the shares to the Trust within the stipulated timeline.
The proposed transfer to the Trust will be done in strict compliance of the approval granted by Sebi in May, 2014, wherein the regulator had said that 'Irrevocable Independent Trust' should include trustees either from public sector banks or public financial institutions for advancing philanthropic activities.
"The trustees shall effect sale of the trust property within a period of two years from the date of transfer of securities to the Trust. Promoters shall not have any beneficial interest in the Trust," Sebi had said.
As per June quarter, the promoters' stake was at 81.64 per cent and the public shareholding stood at 18.36 per cent.
In a separate order, Sebi said the ban imposed on Bagalkot Udyog Limited for not complying with minimum public shareholding norms "would stand withdrawn immediately after the equity shares of the company are delisted from BSE."
"The interim order or the directions issued thereunder shall not cause any hindrance to the delisting process, if any, initiated or to be initiated by the company/its promoters," it added.
