sebi:WTM/PS/103/CFD/DEC/2015
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Interim order dated June 04, 2013 confirmed against the Company, its directors, promoters and promoter group for failure to maintain minimum public shareholding.
Provisions invoked
- s. 19
- s. 21
- s. 12A
Parties
- Gandhidham Spinning and Manufacturing Company Limited
- Directors
- Promoters
- Promoter Group
Holding
SEBI confirmed the directions issued in the interim order dated June 04, 2013 against Gandhidham Spinning and Manufacturing Company Limited, its directors, promoters and promoter group for continuous non-compliance with the minimum public shareholding (MPS) requirement of 25%.
Full text
Page 2 of 4 passed. The equity shares of the Company are listed on the Bombay Stock Exchange Limited (‘BSE’). The scrip of the Company is suspended for trading.
Page 3 of 4 and the Company is not been able to re-start the operations. Further, the promoters’ do not have an immediate project plan in the Company. e. The promoters now hold 33,11,360 shares amounting to 98.82% and 39,640 shares amounting to 1.82% is the public shareholding in the Company. The Company is suspended w.e.f. April 26, 1999 and there has been no trading in the shares of Company since 15 years. The shares of the Company are still in physical mode and the Company has no major source of income, except some rentals. There are no permanent employee on the rolls of the Company. The Company does not have any complaint from its existing shareholders despite regularly being sent the annual reports. f. At the time of acquisition, the present promoters had floated an open offer (i.e. in November 2003) to buy the shares from the existing shareholders. However, only 2 applications of 25,050 shares were received. Out of these two, one application for 25,000 was from New India Assurance Co. Limited. The same shows that the open offer had received very poor response from the shareholders. The majority of the shareholders are either non-existent at the address available or must have died (as the shares were allotted 50 years back). g. The public shareholders in the Company are only 0.45%. The Company in order to check the status of the shareholders had decided to send the annual report for the year 2014, through registered post with acknowledgment due. The same revealed that 50
Page 4 of 4 the Securities Contract (Regulation) Act, 1956 (‘SCRA’). As per the shareholding pattern of the Company for the quarter ended September 2015, as seen in the BSE website, the promoter hold 98.82% and the public holds only 1.18%. The Company is therefore in violation of the MPS requirements.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:WTM/PS/103/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.