sebi:WTM/PS/27/CFD/AUG/2013

SEBI · SEBI · 2013-03-26 · Prashant Saran, Whole Time Member

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Facts / Headnote

Directions issued vide interim order dated June 04, 2013 revoked with immediate effect; warning issued; no further action proposed

Provisions invoked

• s. 19
• s. 12A

Parties

• Essar Ports Limited
• its directors
• promoters and promoter group

Holding

The directions issued vide the interim order dated June 04, 2013 against Essar Ports Limited, its directors, promoters and promoter group are revoked with immediate effect and no further action as contemplated in paragraph 18 of the interim order will be initiated, subject to a warning to ensure compliance.

Full text

Page 2 of 3 4.07% of the paid-up equity share capital of the Company on a diluted basis. It is the submission of the Company that it intimated Port of Antwerp about SEBI's approval and thereafter on May 15, 2013 its Board agreed for such conversion of GDS into equity shares. As a demat account was required for the credit of the equity shares pursuant to the conversion, Port of Antwerp had to open a demat account. It was submitted that for the purposes of opening a demat account, Permanent Account Number (PAN) and certified copy of the PAN card is a pre-requisite and therefore, Port of Antwerp applied for a PAN card and the same was obtained on June 11, 2013. On receipt of the PAN card, a demat account was opened on June 12, 2013. The Company also submitted that the conversion was completed on June 20, 2013 in accordance with the procedure laid down by the GDS depository (viz., The Bank of New York Mellon). The Company submitted that following the conversion, the public shareholding in the Company had increased to 25.03% of the paid-up capital. The Company further submitted that it took sincere efforts to comply with the MPS norms but could not do so within the stipulated date due to various administrative issues which delayed the conversion of GDS. The Company also represented that it is now compliant with the MPS norms and requested SEBI to drop the actions taken vide the

Page 3 of 3 initiate further action against the Company, its directors, promoter and promoter group, as contemplated in paragraph 18 of the interim order.

interim order. 5. During the personal hearing, the representatives submitted that the delay with respect to the conversion of the GDS was mainly because of the approvals required by Port of Antwerp. It was also submitted that Port of Antwerp is a government owned port in Europe and that the percentage of equity shares sold under the OFS was fixed on the basis of the equity shares that would come into existence post conversion of the GDS held by Port of Antwerp. The representatives further submitted that the GDS was issued to Port of Antwerp during May 2011.

Source: SecMarx — sebi:WTM/PS/27/CFD/AUG/2013. 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.