Sebi acts against promoters, directors

Sebi acts against promoters, directors

Cracking the whip on the promoters of over 100 private sector companies having failed to attain minimum 25 per cent public holding, Sebi on Tuesday ordered freezing their voting rights and corporate benefits, and barred them from holding any new position on boards of listed firms.

The promoters and directors of non-compliant companies have also been barred from dealings in the market and holding new positions on the boards of listed entities till the time those companies comply with the minimum public shareholding requirements.

In a 13-page order late on Tuesday night, Sebi also warned of further actions, including levying of monetary penalties, initiation of criminal proceedings, restricting the trading activities of related stocks and other possible directions.

Failed to meet deadline

Sebi said a total of 105 companies failed to meet the norms within the stipulated deadline of June 3, despite repeated reminders and various relaxations provided to the companies to help them meet the requirements.These included 72 companies whose shares are actively traded on the stock market, while the shares of 33 other companies are currently suspended for various reasons.

The companies whose promoters and directors will face the prohibitory orders, which have come into immediate effect, include Adani Ports, BGR Energy Systems, Essar Ports, Omaxe, Plethico Pharmaceuticals and Tata Teleservices.