Tata Teleservices Maharashtra jumps 5% as Sebi lifts curbs

Moneycontrol Bureau

Tata Teleservices (Maharashtra) rises 5 percent intraday on Friday as Securities and Exchange Board of India (Sebi) revoked the curbs it had imposed on the telecom operator, its directors and promoters, for non-compliance with minimum public shareholding norms.

TTML has now complied with the 25 percent minimum public shareholding requirements, hence cap was removed by the market regulator.

According to Sebi regulations, all listed private sector companies needed to have minimum public shareholding by June 3, 2013.

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Through an order dated June 4, the regulator had imposed various restrictions on 105 non-compliant companies including Tata Teleservices (Maharashtra), their promoters and directors for not meeting the public holding requirement by June 3.

Sebi had also 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.

In its submissions to Sebi, the company said that it had undertaken a bonus issue of 5.77 crore shares to the public shareholders on August 10, 2013 for the purposes of complying with the norms.

Consequently, the public shareholders now hold 25.10 percent as required under the minimum public shareholding norms.

At 11:22 hrs the stock was at Rs 6.44, up Rs 0.25, or 4.04 percent on the BSE.

(With inputs from PTI)