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Sebi Refuses to Lift Curbs on 2 Firms Over Public Shareholding

Markets regulator Sebi on Thursday refused to revoke the restrictions imposed on two companies - Andhra Pradesh Tanneries and Shayona Petrochem - for non- compliance with the minimum public shareholding (MPS) norms.
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Sebi Refuses to Lift Curbs on 2 Firms Over Public Shareholding
New Delhi: Markets regulator Sebi on Thursday refused to revoke the restrictions imposed on two companies - Andhra Pradesh Tanneries and Shayona Petrochem - for non- compliance with the minimum public shareholding (MPS) norms.

The Securities and Exchange Board of India (Sebi), in June 2013, had imposed various curbs on over 100 firms, including these two companies, their promoters and directors for not achieving the minimum 25 per cent public holding within the June 3 deadline of the same year.

The 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 companies of further actions, including levy of monetary penalties, initiation of criminal proceedings and restricting the trading activities of related stocks.

In two separate orders, the regulator has confirmed the directions issued through the interim order in June, 2013 against the companies.

Further, for "proper regulation of the securities market and in view of the continuing nature of the violations" committed by the companies, Sebi may also initiate other actions against the two firms and their respective directors and promoters.

Sebi observed that the companies have not complied with the MPS requirements till date and such non-compliance being continuous in nature has confirmed the directions issued against them.

As per the last disclosed shareholding pattern of the companies, public shareholding of Andhra Pradesh Tanneries stood at 11.73 per cent for the September quarter of 2015, while public holding in Shayona Petrochem was 19.24 per cent for the June quarter of 2012.

In a separate order, Sebi has slapped a fine of Rs 1.5 lakh on Chaman Exports for its failure to register with the regulator's online complaint redressal system within the stipulated time, even after repeated reminders.

In April 2013, the regulator had directed all listed companies to obtain Sebi Complaints Redressal System (SCORES) authentication within the stipulated time. However, the firm had failed to obtain registration.

Thereafter, a letter dated December 2, 2013, was issued to the firm, whereby it was once again advised to submit the requisite information regarding SCORES authentication by December 18, 2013, and it once again failed to comply with the directives.

SCORES, launched by Sebi in June 2011, provides a centralised database of all complaints. Online movement of complaints to the listed companies concerned and upload of their Action Taken Reports (ATRs) are done through this system.

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