sebi:WTM/PS/192/CFD/MAR/2015
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Facts / Headnote
Interim order dated July 22, 2015 revoked; Company warned and advised to ensure compliance with all applicable laws and regulations administered by SEBI.
Provisions invoked
- s. 19
- s. 12A
Regulations
- Reg. 29(2)
Parties
- Accel Frontline Limited
- Accel Limited
- CAC Holdings Corporation
- CAC Corporation
Holding
SEBI revoked the interim order dated July 22, 2015 against Accel Frontline Limited, its directors, promoters and promoter group, and warned the Company and its promoters and directors to ensure compliance with all applicable laws and regulations administered by SEBI, in letter and spirit.
Full text
Page 2 of 5 2. In response, the Company, vide letter dated July 31, 2015, submitted that one of the members of its promoter group, namely, Accel Limited, would be selling 0.29% excess stake through an Offer for Sale )”OFS”). Thereafter, vide letter dated August 17, 2015, the Company inter alia stated that its promoter group had undertaken another OFS on August 12, 2015 on the Bombay Stock Exchange Limited (“BSE”) to divest the excess holding of 87,574 (0.29%) equity shares held by the promoters. The Company further stated that its promoter, Accel Limited had offered the said shares in the OFS, wherein 21,894 shares were sold in the Retail Category and 65,680 shares were sold in the Non-retail category. According to the Company, it became MPS compliant pursuant to the said OFS. The Company further stated that it made necessary disclosures to the stock exchanges and also filed the revised shareholding pattern.
Page 3 of 5 (c) The promoter group has been consistently working for the growth of the Company. It was the immediate actions of the promoter group, post the open offer, which helped the Company recover from a stressed situation. (d) The noticees requested SEBI to condone the delay and also requested SEBI to drop the adjudication proceedings.
Page 4 of 5 e) Pursuant to the above three OFS, the promoter group of the Company holds 2,24,08,978 shares (i.e., 75.29%) equity shares in the Company. The promoter group therefore holds 0.29% equity shares in excess which has to be divested in order to comply with the Minimum Public Shareholding norms.
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Source: SecMarx — sebi:WTM/PS/192/CFD/MAR/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.