Market regulator Sebi has partially revoked the restrictions it had slapped on EICL Ltd, its directors and promoters for alleged non-compliance with the minimum public shareholding requirements, as the company is in the process of delisting from the stock exchanges.
Sebi had barred EICL directors and promoters from dealing in the company's securities for failing to achieve the mandatory minimum 25 per cent public shareholding.
The curbs have been revoked so as "not hinder the already commenced voluntary delisting process initiated by the EICL," Sebi said in a order today.
The Securities and Exchange Board of India said however that restrictions would be "re-imposed/revived immediately" if the company fails to delist by June 6, 2014.
Moreover, it said that directions regarding freezing of voting rights and corporate benefits of the promoters and directors as well as restraint on them from holding any new positions in any listed firm "shall continue to be in effect" till the time the company is delisted or becomes compliant with the minimum public shareholding norms.
Sebi had asked all listed private sector companies were to achieve minimum public shareholding by June 3, 2013.
Through an order dated June 4, 2013, Sebi had slapped various restrictions on 105 non-compliant companies including EICL, their promoters and directors for not meeting the requirement within the deadline.
The market 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 the firms of further actions including levy of monetary penalties, initiation of criminal proceedings, restricting the trading activities of related stocks and other possible directions.
EICL had submitted to Sebi that it had progressed significantly under the 'Delisting Regulations' and therefore requested the regulator to amend its directions in order to enable it to complete the process of voluntary delisting.
