sebi:WTM/PS/139/CFD/JAN/2016
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Facts / Headnote
Interim order dated June 04, 2013 confirmed against Herman Milkfoods Limited, its directors, promoters and promoter group.
Provisions invoked
- s. 19
- s. 21
- s. 12A
Parties
- Herman Milkfoods Limited
- its directors
- promoters
- promoter group
Holding
The Company failed to maintain the minimum public shareholding (MPS) of 25% as mandated under Rule 19A of the SCRR and Clause 40A of the Listing Agreement, and the interim order dated June 04, 2013 against the Company, its directors, promoters and promoter group is confirmed.
Full text
Page 2 of 4 assets and shareholding as on the date of order till next date of hearing i.e. April 01, 2013. 4. Before proceeding further, an opportunity of personal hearing was afforded to the Company on July 01, 2015, which was later rescheduled to July 08, 2015. Mr. Ravinder Garg, the director of the Company vide his e-mails dated June 23, 2015 and July 07, 2015, expressed his inability to attend the personal hearing on the date fixed due to certain medical reasons. Mr. Ravinder Garg also filed the written submissions dated June 23, 2015, on behalf of the Company, while stating that the Company is maintaining MPS of 25% as per the listing agreement and requested that its name be excluded from the list of companies which have not complied with the requirement of maintaining MPS requirements. Along with the written submissions, the Company also submitted a copy of the Order of the Company Law Board, New Delhi, dated August 13, 2014. The said order states that the status quo order dated February 21, 2013, is subject to the decision of SEBI, if any, over the shareholding pattern of the Company. Mr. Ravinder Garg, the director of the Company later vide his another e- mail dated July 16, 2015, requested to adjourn the personal hearing for four weeks.
Page 3 of 4 25% as mandated under Rule 19A of the SCRR and Clause 40A of the Listing Agreement read with section 21 of the Securities Contract (Regulation) Act, 1956 (‘SCRA’). As per the shareholding pattern of the Company for the quarter ended March 2013 (available at the BSE website), the promoters had held 93.47% and the public had held 6.53%. The Company was therefore in violation of the MPS requirements.
Page 4 of 4 are 81. However, in the absence of any other detail and reply from the Company, it is difficult to verify the procedure adopted by the Company for complying with the MPS requirements.
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Source: SecMarx — sebi:WTM/PS/139/CFD/JAN/2016. 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.