SEBI takes action against 105 firms not meeting MPS norms
SEBI issued an order late on Tuesday stating 105 firms have not complied with minimum 25 percent shareholding norms and it will take action against these firms and their promoters and or directors.
June 05, 2013 / 14:01 IST
Moneycontrol Bureau
The Securities and Exchange Board of India will initiate action against those listed private companies that failed to meet minimum 25 percent public shareholding (MPS) norms, the deadline for which ended on June 3.According to a SEBI order dated June 4, 105 companies have failed to meet MPS guidelines. Some of the companies, which didn't meet the MPS norms include Adani Ports, BGR Energy, Essar Ports, Omaxe, Plethico Pharma and Tata Teleservices.Trading in 33 of the 105 companies had already been suspended. The SEBI order, which was issued late on Tuesday, states the following actions could be initiated against the non-compliant companies, their promoters and or their directors:-- Levying monetary penalty under adjudication proceedings
-- Initiating criminal proceedings by way of prosecution proceedings
-- Moving the scrip to trade to trade segment
-- Excluding the scrip from F&O segment
-- Any other action that may be deemed appropriateThe market regulator could also pass suitable directions against the promoter/promoter groups and directors of the companies, which may include direct freezing of voting rights and corporate benefits like dividend, rights, bonus shares etc. with respect to the excess of proportionate promoter/promoter group shareholding in the non-compliant companies, till these companies comply with the MPS guidelines.The promoters and directors will be prohibited from dealing in securities of their respective companies, directly or indirectly and the directors of such companies restrained from holding any new position as a director in any listed company, until the MPS norms are complied with, SEBI further added.These companies and their promoters and directors have been asked to file their replies, if any, to the SEBI order within 21 days, it said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
