MPS norms: SAT rejects Gillette's plea; upholds SEBI order

In what could be a big blow for Gillette India, the Securities Appellate Tribunal (SAT) upheld Securities and Exchange Board of India's (Sebi) order of rejecting its proposal on minimum public shareholding (MPS) on Wednesday, reports Ashmit Kumar of CNBC-TV18.

The company had made a three-part proposal to comply with MPS norms. Sebi rejected it on the grounds that the proposal re-classified the company’s top executive as non-promoter entity which violated the MPS norm. SAT also vacated the interim stay which had stopped the market regulator from taking any action against the company till the proceedings in the case were going on. Also read: Probe violation of public shareholding norms: SAT to Sebi This is the first matter in which the SAT was dealing with respect to compliance of MPS norms. Gillette, through the help of its counsel, tried to file a miscellaneous petition. It also tried to seek an extension on the interim stay. One important takeaway from the case was that if the SAT had favoured Gillette in this case, another 104 other companies which had not complied would have flooded the tribunal with similar litigations. SAT has taken a very guarded position on the issue.