Public holding norms: Sebi confirms curbs on HRB Floriculture

Regulator Sebi today confirmed the restrictions, including freezing of voting rights and corporate benefits, it had imposed on HRB Floriculture for failing to comply with the minimum public shareholding norm.

The Securities and Exchange Board of India (Sebi) in June last year, had frozen voting rights and corporate benefits like dividend, rights bonus shares, share split etc, with respect to the excess shares held by the promoters beyond the 75 per cent limit, till the time the firm complies with the norms.

Besides, Sebi had barred seven promoters and directors from buying, selling or dealing in shares of the company, except for the purpose of complying with the minimum public holding norms.

Also, the entities had been restrained from holding "any new position as a director in any listed company, till such time the company complies with the minimum public shareholding requirement".

In an order passed today, Sebi said, "HRB Floriculture continues to remain non–compliant with the requirement of minimum public shareholding (of 25 per cent)".

The promoters continue to hold 90.06 percent in the company.

"Such non-compliance being continuous in nature and in light of the fact that no concrete steps towards compliance of minimum public shareholding requirement was taken by the company, it becomes necessary, for the proper regulation of the securities market, to confirm the directions issued vide the interim order against HRB Floriculture, its directors and promoters/promoter Group," it added.

According to norms, all listed companies are required to have minimum public shareholding of 25 per cent by June 3, 2013.