sebi:WTM/PS/48/CFD/OCT/2013
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Facts / Headnote
Interim order directions revoked; company warned but no further action initiated
Provisions invoked
- s. 19
- s. 12A
Parties
- Shree Karthik Papers Limited
- its directors, promoters' and promoter group
Holding
The directions issued against Shree Karthik Papers Limited, its directors, promoters' and promoter group in the interim order dated June 04, 2013 are revoked with immediate effect, and the Company is warned for delay in complying with the minimum public shareholding norms.
Full text
Page 2 of 2 2007. The Company further submitted that in order to comply with the MPS norms, it had opted to divest 11,00,000 equity shares constituting 5.76% of the share capital of the Company through an Offer for Sale ('OFS') on August 17, 2013. Pursuant to the same, the promoters' holding was reduced to 74.52%, thereby raising the public shareholding to 25.78%.
5. It was also submitted that the delay in compliance was due to its belief that it will be exempted from complying with the provisions of the MPS norms and requested SEBI to condone the delay. The Company also represented that it is now compliant with the minimum public shareholding norms and requested SEBI to withdraw the directions issued in paragraph 17 of the interim order.
6. I note that pursuant to the rehabilitation scheme, the promoters' holding increased to 80.28% as on March 31, 2007. It is observed that rule 19A of the SCRR was inserted w.e.f. June, 2010. The Company was under a three (3) years' notice to achieve compliance with the MPS norm. Therefore, I find that the Company has definitely delayed in complying with the MPS requirements under the SCRR. The Company is, therefore, warned for the same and is advised to ensure compliance with all the applicable laws and regulations administered by SEBI that govern its activities in the securities market. Considering the fact that the Company is now compliant with the stipulated minimum public shareholding level, I do not propose to initiate further action against the Company, its directors, promoters' and promoter group, as contemplated in paragraph 18 of the interim order.
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Source: SecMarx — sebi:WTM/PS/48/CFD/OCT/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.