sebi:WTM/PS/101/CFD/DEC/2015
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Facts / Headnote
Interim order freezing excess promoter shareholding, prohibiting dealing in securities, and restraining promoters/directors from holding new director positions in any listed company pending compliance with minimum public shareholding norms; treated as show cause notice.
Provisions invoked
- s. 19
- s. 21
- s. 12A
Regulations
- Reg. 7(4)
Parties
- Sayaji Hotels Limited
- promoters/promoter group of Sayaji Hotels Limited
- directors of Sayaji Hotels Limited
- Ms. Rabiabai Dhanani
Holding
Sayaji Hotels Limited and its promoters/directors were found non-compliant with the 25% minimum public shareholding (MPS) requirement under Rule 19A of the SCRR, having failed to restore MPS within twelve months of the fall below 25% on October 03, 2013. SEBI directed freezing of excess promoter shareholding, prohibited promoters/directors from dealing in the company's securities (except for MPS compliance), and restrained them from holding new director positions in any listed company until compliance.
Full text
Page 2 of 11 public shareholding (hereinafter referred to as ‘MPS’) in companies, the methods prescribed by the Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) for listed companies to achieve compliance with such norms and the need for such MPS in listed companies.
Page 3 of 11 19A. (1) Every listed company [other than public sector company] shall maintain public shareholding of at least twenty five per cent.:
Page 4 of 11 e. In order to align the requirements in the Listing Agreement with the requirements as specified in Rule 19(2)(b) and Rule 19A of SCRR and to specify the manner in which public shareholding may be raised to the prescribed minimum level, SEBI issued a Circular No CIR/CFD/DIL/10/2010 dated December 16, 2010 to suitably amend Clause 40A of the Listing Agreement. This circular provided the following methods for complying with the MPS requirement: i. Issuance of shares to the public through prospectus; ii. Offer for sale of shares held by promoters to public through prospectus; iii. Sale of shares held by promoters through the secondary market;
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Source: SecMarx — sebi:WTM/PS/101/CFD/DEC/2015. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.