sebi:WTM/PS/37/CFD/SEPT/2013
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Facts / Headnote
Interim directions revoked with immediate effect; no further action initiated; warning issued
Provisions invoked
- s. 19
- s. 81
- s. 12A
Parties
- Sundaram-Clayton Limited
- its directors
- promoters and promoter group
Holding
The interim directions dated June 04, 2013 against Sundaram-Clayton Limited, its directors, promoters and promoter group are revoked with immediate effect. No further action as contemplated in paragraph 18 of the interim order will be initiated, but the Company is warned to ensure compliance.
Full text
Page 2 of 3 the Company, it has allotted 12,64,501 equity shares of `.5/- each on July 11, 2013, after the receipt of in-principle listing approvals (for the shares issued in the IPP, which were tradable from July 18, 2013) from the stock exchanges. The Company has further submitted that one of its promoters also sold 4 equity shares on July 11, 2013 by way of an Offer for Sale ('OFS'). The Company represented that it is now compliant with the MPS norms and requested SEBI to condone the delay in compliance.
Page 3 of 3 IPP. Pursuant to the aforesaid allotment of shares, the shareholding of the promoter and promoter group in the Company has reduced from 80% to 75%. The public shareholders presently hold 25%, which is the minimum shareholding required to be held by public shareholders in a listed company, under the MPS norms.
5. I have considered the reply and submissions made by the Company. The Company has submitted that it had made sincere efforts for achieving and complying with the MPS requirements. It has been said by the Company that it had convened the Board meeting for IPP issue on February 08, 2013 and the shareholders' approval was taken on March 20, 2013. The delay in coming out with the issue happened because of the declaration which forms part of the Red Herring Prospectus ('RHP') which has to be signed by all the directors of the Company. However, due to certain unavoidable
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Source: SecMarx — sebi:WTM/PS/37/CFD/SEPT/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.