The Securities and Exchange Board of India (Sebi) has initiated action against the promoters and directors of Gillette India for the company’s non-compliance with the minimum public shareholding (MPS) norms specified by the regulator.
In effect, promoters and directors have been prohibited from dealing in securities of Gillette, either directly or indirectly except for the purpose of complying with MPS norms, till the company takes its public shareholding from current 11.24 to minimum 25 per cent.
The market regulator’s order against Gillette comes just days after the latter’s appeal was dismissed by the Securities Appellate Tribunal (SAT). The company had filed an appeal with SAT in November challenging Sebi’s refusal to the company’s submitted proposal for complying with minimum 25 per cent public shareholding norms.
The market regulator’s order would result in freezing of voting rights and corporate benefits like dividend, rights, bonus shares, split, etc of the promoter group with respect to excess promoter holding of 55 per cent.
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