Capital market regulator Sebi has revoked the restrictions imposed on Kovalam Investment and Trading Company, its directors and promoters for not complying with minimum public shareholding norms.
Securities and Exchange Board of India (Sebi) has removed the curbs citing that Kovalam Investment had achieved the stipulated 25 per cent minimum public shareholding.
"...Hereby revoke the directions issued vide the interim order dated June 04, 2013, against the company, Kovalam Investment and Trading Company Ltd, its directors, promoters and promoter group, with immediate effect," Sebi said in an order today.
Sebi had asked all listed private sector firms to achieve minimum public shareholding of 25 per cent by June 3, 2013.
Through an order dated June 4, 2013, Sebi had slapped various restrictions on 105 non-compliant companies including Kovalam Investment, their promoters and directors for not meeting the minimum public holding 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 and other possible directions.
Ruling on Kovalam Investment today, Sebi said it has "perused the shareholding pattern of the company for the quarter ended September 2013, which confirms the submission of the company that the public shareholding is above the minimum level of 25 per cent...".
However, it noted that Kovalam Investment had complied with the norms belatedly and has advised the company to ensure compliance with all the applicable laws and regulations administered by Sebi, in letter and spirit, within the time lines prescribed by the market regulator under such statutes.
