sebi:WTM/PS/50/CFD/OCT/2013
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Facts / Headnote
Interim directions dated June 04, 2013 vacated with immediate effect
Provisions invoked
- s. 19
- s. 12A
Parties
- Shalimar Wires Industries Limited
- its directors
- promoters
- promoter group
Holding
The interim order dated June 04, 2013 against Shalimar Wires Industries Limited, its directors, promoters and promoter group is vacated with immediate effect.
Full text
Page 2 of 2 2 each amounting to 500 lacs were allotted to the promoters by the Company in the board meeting held on February 05, 2013. These 2,50,00,000 equity shares to the promoters are under lock in of three (3) years. c. Further, as per the scheme, 59,50,000 equity shares of 2 each were allotted to Asset Reconstruction Company (India) Limited on August 06, 2013. d. Pursuant to the same, the promoter shareholding based on expanded capital of the Company reduced to 73.99% thereby raising the public shareholding to 26.01%. e. The Company also represented that it is now compliant with the MPS norms and requested SEBI to withdraw the show cause notice.
4. I have considered the replies of the Company and the submissions made in the personal hearing. I note that the Company was a sick company for which the BIFR had sanctioned a rehabilitation scheme. I have also perused the order dated June 10, 2010, passed by BIFR and the sanctioned rehabilitation scheme. I note that the allotment of equity shares to Asset Reconstruction Company (India) Limited has been exempted from complying with the requirement of the applicable provisions of the Companies Act, 1956, SEBI Guidelines for preferential allotment of shares, SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, SEBI (Disclosure & Investor Protection) Guidelines, 2000. The Company has also been exempted from the ceiling on promoters' holding. Considering above and the fact that the Company is now compliant with the stipulated minimum public shareholding level, I do not find it necessary to continue with the interim directions or initiate further action against the Company, its directors, promoters and promoter group, as contemplated in paragraph 18 of the interim order.
5. In view of the same, I, in exercise of the powers conferred upon me under section 19 of the Securities and Exchange Board of India Act, 1992 read with sections 11(1), 11(2)(j), 11(4) and 11B thereof and section 12A of the Securities Contracts (Regulation) Act, 1956, hereby vacate the directions issued vide the interim order dated June 04, 2013 against the company, Shalimar Wires Industries Limited, its directors, promoters and promoter group, with immediate effect.
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Source: SecMarx — sebi:WTM/PS/50/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.