SEBI turns the heat on erring promoters

Taking a strong position against companies which failed to achieve minimum 25% public holding, market regulator SEBI says it had sent as many as 191 reminders to these firms in the run-up to the deadline.

Taking a strong position against companies which failed to achieve minimum 25% public holding, market regulator SEBI says it had sent as many as 191 reminders to these firms in the run-up to the deadline.

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In these reminders, which began in November 2012 and continued till April this year, the companies were asked to initiate steps to meet the requirement or be ready for penal actions in the event of non-compliance within stipulated time.

Cracking the whip on the promoters and directors of 105 private sector companies that failed to attain minimum 25% public holding by June 3, SEBI late last night barred them from dealing in shares and from holding any new position on boards of listed entities.

Besides, SEBI also ordered freezing the voting rights and corporate benefits of promoters of these companies, in proportion of their non-compliance to the minimum public holding norms that require at least one-fourth of the share capital to be held by the non-promoter public shareholders.