Sebi revokes restrictions against two firms

Jul 29 2013, 17:53 IST
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SummaryRestrictions for not meeting Sebi's minimum public shareholding norms have been revoked.

Restrictions imposed on Adani Ports & Economic Zone Ltd and Nagarjuna Agrichem, as also their directors and promoters, for not meeting Sebi's minimum public shareholding norms have been revoked by the market regulator, as they have now complied with the directions. While Adani Ports complied with the guidelines after Sebi's deadline of June 3, the other company had met the norms on the last day itself but failed to intimate the regulator and bourses about the same on time.

The Securities and Exchange Board of India (Sebi) had imposed various restrictions on 105 firms and their promoters and directors on June 4 after the expiry of deadline for achieving minimum 25 per cent public holding. The regulator had frozen the voting rights and corporate benefits of promoters and directors of these companies and barred them from holding any new position on boards of listed firms and also, among others. It had also warned of further actions including levy of monetary penalties, initiation of criminal proceedings, restricting the trading activities of related stocks and other possible directions.

In separate orders on the two firms, Sebi said that the restrictions are being revoked as they have complied with the norms. On Adani Ports, Sebi said the company had allotted further shares only on June 7, which was much after the due date, in order to achieve compliance. Noting that two other listed companies of the Adani Group had complied with the minimum public shareholding norms before the prescribed time frame and the company has also complied with Sebi's norms, though belatedly, the regulator "do not propose to initiate further action against the company". However, Sebi warned the company for its conduct and advised to ensure compliance with all the applicable laws and regulations administered by Sebi, in letter and spirit.

In Nagarjuna Agrichem case, Sebi said the company has complied with the 25 per cent public shareholding norms on June 3, 2013, last date prescribed for compliance. However, the firm failed to intimate the regulator about the same on time as it had sent the message through courier service. "Having achieved compliance on the last day, the company should have been equally serious in disseminating timely information regarding its compliance to Sebi and the BSE through faster communication modes like e-mail, facsimile message, etc," the regulator noted. After considering facts that these companies have complied with the minimum public shareholding norms, Sebi said, it has revoked the directions issued vide the interim order dated June 4, 2013 against the company, Nagarjuna Agrichem and Adani Ports & Economic Zone their directors, promoters and promoter group, with immediate effect.

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